Canva Layoffs: 1,200 Jobs Cut in Major AI Restructure 2026

Canva, the Australian-founded design platform, is cutting or relocating more than 1,200 jobs—about 22% of its global workforce—in a major restructure. The move, announced by CEO Melanie Perkins, aims to collapse layers and bring teams together in person while embedding AI tools to stay competitive.

What Happened at Canva?

In an email to staff on Wednesday, Perkins called the restructure “without doubt the hardest moment in our thirteen-year history.” The changes will affect 1,271 people, according to the company. Some roles will be changed, others relocated to centralised hubs, and many will be eliminated.

Perkins did not specify the exact number of job losses but acknowledged that the company will be “saying goodbye to teammates and friends who have helped build Canva into what it is today.” Those leaving will receive at least six months of salary and retain healthcare coverage for a further 12 months in countries where applicable.

Why Is Canva Making These Cuts?

Canva’s restructure mirrors a broader trend across the technology sector. Software companies are fighting to stay competitive against cheaper artificial intelligence disrupters while aggressively embedding AI tools themselves. By collapsing layers and centralising teams, Canva aims to become more agile and efficient.

The company is also focusing on bringing more teams together in person, which Perkins says will help foster collaboration and innovation. This shift comes as many tech firms reassess their remote work policies and seek to streamline operations.

Who Is Affected?

The 1,271 affected employees represent 22% of Canva’s global workforce. The restructure will impact staff across various departments, including some who helped build the platform into a global design powerhouse. Those asked to relocate will receive comprehensive support, Perkins said, acknowledging that relocating is a big decision.

The layoffs are particularly significant for Australia, where Canva is a flagship tech success story. The company, founded in 2013, has grown to become one of the world’s most valuable private software companies.

What This Means for the Tech Industry

Canva’s move is the latest in a series of layoffs across the tech sector as companies pivot to AI. Firms are restructuring to reduce costs and invest in AI capabilities, often at the expense of traditional roles. This trend is expected to continue as AI tools become more sophisticated and accessible.

For Canva, the challenge is to integrate AI without losing the creative spirit that made its design tools popular. The company has already introduced AI-powered features, such as Magic Studio, and will likely double down on such offerings.

• 22% workforce cut: 1,271 jobs affected globally.
• AI focus: Restructure aims to embed AI tools and stay competitive.
• Relocation: Some staff asked to move to centralised hubs.
• Severance: At least six months’ salary and 12 months’ healthcare.
• Industry trend: Mirrors broader tech layoffs driven by AI disruption.

Canva’s Restructure at a Glance

What to Watch Next

Canva’s ability to execute this restructure while maintaining its innovative edge will be closely watched. The company must balance cost-cutting with employee morale and product development. How it supports departing staff and integrates AI will shape its reputation. The background to this story is set out in AI Disruption Forces Nine to Cut 30 Jobs at Age and SMH. A related thread runs through Nine cuts 30 jobs at Age and SMH due to extreme AI disruption.

For the broader tech sector, Canva’s move signals that even successful companies are not immune to the pressures of AI-driven disruption. Other firms may follow suit, leading to more layoffs and restructures. Earlier coverage in Royal Mail Job Cuts 2025: 2,500 Roles Axed in Restructure shows how the argument developed. A closer look at the same subject appears in BBC Salford Move: Does Relocating Power North Work?.

As the dust settles, attention will turn to whether Canva can maintain its growth trajectory and continue to attract top talent. The coming months will reveal whether this painful decision pays off. Anyone following the wider picture can start with Tech Layoffs 2026 Surpass 197,000 as Capital Shifts to AI.

For a closer look at how other major employers are managing similar pressures, see our coverage of the NAB to cut 2,500 jobs in major restructure, which shows how banks are also shrinking headcounts. The trend extends beyond tech and finance, as Legal & General’s plan to cut 1,000 jobs by mid-2027 demonstrates. These examples highlight a wider corporate shift toward leaner operations and AI adoption.

If you’re curious about the platform at the center of this story, our guide on what is Canva and how to use it to create a design explains its core features and appeal. Understanding Canva’s tools helps contextualize why the company is betting big on AI to maintain its edge. As the restructure unfolds, Canva’s ability to innovate will be key to its recovery.