Canva is overhauling its operations through a strategy that will impact 1,271 employees, accounting for 22% of its total staff strength, as the Australian design software firm faces its first growth hiccup after 10 years. Canva co-founder and CEO Melanie Perkins informed her employees in an internal memo about the restructuring, which has been the company's "toughest year" in 13 years.
"This has been our toughest year yet and, as we have shared earlier this year, our growth has slowed for the first time in a decade," she said. The overhaul will cover layoffs, job shifts, requests for relocation, and increased in-person collaboration among the teams in Canva's 37 global locations.
The exact number of employees being laid off versus those being redeployed was not explicitly revealed by the company. Through the new restructuring, Canva is set to consolidate its product, growth, and platform teams into one product group, flatten out its management structure, and consolidate specialised positions into more general roles.
Most product teams will now be based in Sydney, while all hybrid employees will be required to work two to three days a week in-office starting January next year. In Perkins' words, the company is going back to its roots through the reset that focuses on "small, empowered teams with the ability to make decisions."
She stated that small steps will not be adequate for this situation: "we need to refound Canva." All departing employees will be receiving at least six months' pay, irrespective of their location; 12 months of health insurance in case of its existence; the one-year cliff vesting rule being waived for new hires; career coaching; as well as the allowance to retain the company MacBook.
Canva will be introducing a collective fund giving grants of $10,000 for departed employees wishing to venture into business or community projects without taking equity. The company is scheduled to host a meeting for all its employees on November 10, where the next steps will be made clear.
Perkins has apologised to the affected individuals, stating that the decision has nothing to do with their individual performance. The move marks a significant pivot for the tech giant as it attempts to navigate a cooling global software market.
Industry analysts suggest that this restructuring is a response to the broader economic climate affecting tech firms globally. By streamlining operations, Canva aims to regain its momentum and focus on core product innovation.
The company remains a dominant player in the design space, and leadership believes these difficult measures are necessary to ensure long-term sustainability. Employees have been offered support services to assist with the transition during this challenging period.
As the company prepares for the November 10 meeting, the focus remains on maintaining morale and ensuring that the remaining workforce is aligned with the new, leaner organizational structure.