Canva Restructuring Affects 1,271 Roles Through Layoffs, Role Changes and Relocations

Employers

Canva, the Australian design-software company, is overhauling its organization in a restructuring that will affect 1,271 people, or 22% of the company, Co-Founder and Chief Executive Melanie Perkins told staff in a note the company published on its newsroom. The note went out on Wednesday, Nov. 4, Sydney time, which was Tuesday, Nov. 3, in the United States.

The 1,271 figure is not a layoff count. Perkins wrote that for some people the changes “will mean changes to their roles or being asked to relocate to centralised hubs,” and that the company will also be “saying goodbye to teammates and friends.” Canva did not say how many of the affected roles will be eliminated, how many will change and how many will be asked to move, and it did not give a breakdown by country.

Perkins called it “without doubt the hardest moment in our thirteen-year history.” She said growth “has slowed for the first time in a decade” and that “new technology is transforming what people can create, how they create it, and what they expect from the products they use.”

What is changing

The note lists three changes. Canva is combining its Product, Growth and Platform groups into one Product organization. It is folding narrower subspecialties into broader roles, “collapsing layers” and consolidating overlapping responsibilities. And it is moving closely connected teams into the same locations: Sydney will become the primary home for more of its product teams, as well as some roles in other specialties.

The company is also tightening office attendance. From January, Canva expects most hybrid employees to spend about two to three days a week in the office, depending on local circumstances.

Severance and support

Canva listed the support for departing employees in the note:

Everyone leaving will receive at least six months of salary, including statutory entitlements, regardless of location. The company is removing the one-year vesting cliff for employees who joined in the past year. Departing staff get 12 months of continued healthcare coverage in countries where Canva currently provides it, and 12 months of its employee assistance program, which also covers family members.

Career support includes one-on-one coaching, interview preparation and a year of LinkedIn Premium, and Canva said a significant portion of its talent acquisition team will help with resumes and interview practice. An opt-in alumni talent directory will be shared with investors, partners and the wider industry. Departing employees can keep their company MacBooks.

Canva is also starting the Canva Collective Fund, which offers US$10,000 grants to departing employees who want to start a business or a community project. Eligible employees have until Dec. 14 to register interest, and Canva said it will take no ownership or equity in what they create.

Timing

Because Canva has teams in 37 countries, Perkins said the timing and process of the conversations with affected staff will vary with local requirements. Affected employees are being invited to individual meetings with a senior leader in their area. Departing staff keep access to Slack and Gmail until the end of the week. Team leads are to share more about changes in their areas by the end of the week, a company-wide all-hands meeting is set for Nov. 10, and individual organizations will meet from Nov. 11.

ABC News in Australia, which reported the cuts at about 1,270 jobs, noted that Canva also has operations in Melbourne, Brisbane, Adelaide and Perth, and that some staff may be asked to relocate to Sydney.

What it means for workers

For employees asked to relocate, the note does not say what happens if they decline, beyond promising “comprehensive support” for the move. For workers outside Australia, local legal requirements will shape when and how notices arrive. Perkins said the company will “continue investing in our global team, particularly where being close to our community, customers and markets matters most,” but did not name specific offices that will grow or shrink.

Sources

Featured photo: The Sydney Central Business District seen from across Sydney Harbour, July 1, 2013. Representative image; not Canva's offices. Photo: Chad Ajamian, via Wikimedia Commons (CC BY 3.0). Cropped from the original.

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