Design software company Canva "apologizes for the pain and disruption" as it announces layoffs or transfers of nearly a quarter of its employees.

"After many months of consideration about how to prepare Canva for the next phase, we made the extremely difficult decision to significantly change the way we organize, the work location of some teams, the job positions and skills we need for the future," Melanie Perkins, CEO of Canva, wrote in a notice to employees and posted on the company website on November 3.

She said the restructuring affects 1,271 people, or 22% of Canva's workforce. Some of them will have to change positions and move to centralized work centers, while others will lose their jobs.

"This is undoubtedly the most difficult moment in our 13-year history. I am deeply sorry for the pain and disruption this will cause to everyone affected," Perkins shared, pledging to "do everything I can to assist." Employees leaving Canva will enjoy many benefits including at least 6 months of salary, 12 months of health insurance and career support resources.

Regarding the reason for the restructuring, Canva CEO explained that "new technology" is changing what people can create, how to create, and expectations with products. "This is our most difficult year to date. As we shared earlier this year, our growth rate has slowed down for the first time in a decade," she said.

According to Perkins, after considering many options, the company realized that small changes were not enough. To prepare for the next decade, they need to reform, returning to the core value of "small, empowered teams that can freely make decisions, take responsibility and focus on what matters most".

According to Business Insider, the announcement comes after Canva lowered its growth expectations. In August, the company adjusted its 2026 revenue growth forecast from 30% to 20%. They also face new competition from AI tools, such as OpenAI and Google's imaging models.

Meanwhile, according to AFR, Canva's number of monthly active users is currently down 12 million compared to the same period last year. The company's revenue of $3.69 billion was well below its baseline target of $5.2 billion for 2026.

Canva was founded in 2013 in Australia and has become one of the most popular graphic design, photo editing, and video platforms in the world. In April, Australian Financial Review estimated the company was worth about $31 billion, down from more than $42 billion last year. This is partly due to concerns about how the company will adapt in the AI ​​era, as users look to many other platforms to create free content.

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