Canva restructure hits 22 per cent of staff as Sydney becomes main product base
Melanie Perkins says growth has slowed for the first time in a decade, with staff facing job losses, relocation or new roles.
Australian design company Canva will overhaul its business in a restructure affecting about 22 per cent of its global workforce, with Sydney to become the main base for more of its product teams and some staff to be asked to relocate, ABC News, the BBC, The Hindu and Mint reported on Wednesday.
The outlets differ on the numbers. The BBC and Mint, which cited Bloomberg, said 1,271 people would lose their jobs, change roles or move to central hubs. The Hindu reported 1,271 job cuts, while ABC News put the figure at about 1,270 jobs affected. Mint said chief executive Melanie Perkins did not specify how many staff would lose their jobs.
In a note to employees, Perkins called the changes "the hardest moment in our 13-year history" and said growth had slowed for the first time in a decade. "I've come to the difficult conclusion that small changes won't be enough," she wrote, according to Mint.
Perkins also said new technology was changing what people expect from the products they use. ABC News noted the announcement did not explicitly mention AI. The BBC said Canva's value had reportedly fallen over concerns about the effect of AI on its business and the cost of adding the technology to its platforms.
Two backers, Blackbird Ventures and Airtree, reportedly cut their valuation of the company from A$60 billion at the end of last year to about A$49 billion, according to the BBC. Mint said Canva had been preparing for a potential listing.
The Hindu reported that Canva will merge its product, growth and platform teams into one organisation and simplify its management layers. "We need to re-found Canva, getting back to our roots of small, empowered teams," Perkins said, as quoted by ABC News.
ABC News said departing staff will receive at least six months' salary, health and wellbeing support and, for some recent hires, removal of the one-year equity vesting cliff. A new fund will also offer US$10,000 grants to those who want to start a business or pursue a community project.
The cuts follow others in Australian technology. The Hindu reported that Atlassian cut 1,600 jobs in March and that WiseTech Global cut nearly a third of its global workforce in February.
Canva, which grew out of a Perth-based startup, has staff in 37 countries. From January, most hybrid workers will be expected in the office two to three days a week.
Sources: ABC News, Canva restructure to affect a fifth of its workforce ahead of Christmas; BBC News, Canva announces major job cuts after 'our hardest year yet'; The Hindu, Canva to cut about 22% of staff as growth slowdown triggers restructuring; Mint, Canva layoffs: Over 1,200 staff to lose job, CEO Melanie Perkins calls it 'hardest moment in our 13-year history'.
