Canva CEO Perkins calls 22% staff cut the toughest in 13-year history

Canva will cut or relocate 1,271 employees, a reduction of 22% of its total global workforce. The design company announced the changes on Wednesday in an email to staff. CEO Melanie Perkins described the move as the most difficult in the company's thirteen-year history.

The restructure aims to collapse organizational layers and increase in-person collaboration. Perkins stated that some employees will see changes to their roles or be asked to relocate to central hubs. Others will leave the company entirely. She noted that the decision requires saying goodbye to teammates who helped build the platform.

Canva has not specified how many of the 1,271 affected individuals will be laid off versus moved. Perkins said the company is committed to supporting those being asked to consider relocation. She described the process as a major decision for those involved.

Departing employees will receive at least six months of salary. They will also keep their healthcare coverage for an additional 12 months in countries where that benefit applies. Employees are allowed to keep their company laptops. Those leaving can also apply for grants worth 10,000 US dollars, or 14,000 Australian dollars, to start their own ventures.

The Australian-founded startup has long been viewed as a potential candidate for a Nasdaq listing. The move adds Canva to a recent wave of restructures in the technology sector. Atlassian recently cut 1,600 roles. Block and WiseTech Global have also reduced their workforces.

Software firms are adjusting their business models to compete with cheaper artificial intelligence tools. While many companies have embraced AI to stay competitive, Canva did not mention AI in its announcement. Perkins said the restructure focuses on bringing teams together physically rather than citing technological disruption.