Canva Restructures, Affecting 1,271 Employees or 22% of Its Workforce, as Growth Slows for the First Time in a Decade, Fox Business Reports
Fox Business says the design software company will merge teams, cut management layers, move more product work to Sydney and ask hybrid staff back to the office two to three days a week. It did not say how many will lose their jobs.
Canva is reorganizing, and more than one in five of its employees is affected, Fox Business reports.
The numbers. The restructuring touches 1,271 employees, or 22% of the workforce. It includes layoffs, changed responsibilities, relocation requests and office changes. Canva did not say how many people would lose their jobs.
The reason. Co-founder and CEO Melanie Perkins told employees Tuesday: "This has been our hardest year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade." Fox says she called it the most difficult moment in the company's 13-year history. The company points to new technology changing how people create content and what they expect from software.
The new structure. Product, growth and platform teams will merge into one product organization. Canva will cut management layers, consolidate overlapping work and fold narrow specialist roles into broader ones. Sydney will become the main home for more product teams and some other departments. Starting in January, most hybrid employees are expected in the office two to three days a week, depending on location.
For those leaving. Canva says severance will be at least six months of salary, including legally required amounts, in every location, plus 12 months of continued health coverage where it currently offers that. It will remove the one-year vesting cliff for people hired in the past year, and offer career coaching and interview help. A new Canva Collective Fund will give departing employees $10,000 grants to start a business or community project, and the company says it will take no ownership or equity.
What comes next. Canva is expected to give more detail at a company-wide meeting on Nov. 10. Fox notes Canva has teams in 37 countries and a platform used by hundreds of millions of people.
Why it matters here. It is another large tech employer cutting staff as software work shifts. Fox also reports eBay plans to cut about 1,000 jobs in its second round of layoffs this year, though we did not read that report.
What we could not check. We did not see Perkins's full message or any statement from employees.