Canva Restructuring: CEO Melanie Perkins Says 22% of Workforce Affected as Growth Slows

Canva CEO Melanie Perkins has announced a major company-wide reorganisation affecting 1,271 employees, or approximately 22% of the design software company’s workforce. The move follows a reduction in Canva’s 2026 revenue growth forecast and comes as the company confronts what its chief executive has described as its most difficult year yet.

Canva, the popular online design and visual communication platform, has announced a significant workforce restructuring that will affect more than one in five employees, marking an important shift for a company long associated with rapid growth.

In an internal memo titled “An important update on our team,” CEO and co-founder Melanie Perkins informed employees that 1,271 workers, representing approximately 22% of Canva’s workforce, would be affected by organisational changes.

The announcement, reported by Business Insider, indicates that the restructuring will involve several different outcomes. Some employees will see changes to their existing positions, others may be required to relocate, and some will lose their jobs.

The company has not established in the supplied report how many of the 1,271 affected employees will ultimately be laid off.

The reorganisation comes after Canva reduced its revenue growth outlook for 2026 from 30% to 20% in August, signalling a more challenging business environment following years of rapid expansion.

Perkins acknowledged the difficulties facing the company, describing 2026 as its “hardest year yet” and saying that “growth has slowed for the first time in a decade.”

The developments raise important questions about Canva’s growth strategy, workforce plans and ability to sustain momentum in the increasingly competitive digital design software market.

Canva Restructuring 2026: Key Details

Source: Business Insider excerpt supplied for this report. The original announcement date and final employee impact should be independently verified.

Why Is Canva Restructuring Its Workforce?

The restructuring follows a period of slowing growth expectations, a significant development for a software company that has expanded rapidly by making digital design tools accessible to a broad audience.

Canva’s platform serves individuals and organisations creating presentations, marketing materials, social media graphics, documents and other visual content.

Its relatively accessible design tools helped the company reach users who might otherwise rely on more specialised professional software.

However, maintaining rapid growth becomes increasingly difficult as businesses scale, particularly when competition, customer expectations and technology requirements continue to evolve.

In August, Canva lowered its anticipated 2026 revenue growth rate by 10 percentage points, moving from a forecast of 30% to 20%.

That adjustment represents a one-third reduction in the previously expected growth rate.

Importantly, a lower growth forecast does not necessarily mean that revenue is declining. A company expecting 20% revenue growth is still projecting higher revenue than the previous year, but at a slower pace than initially anticipated.

The distinction matters because organisational restructuring can be driven by the need to adapt to slower expansion, rather than an outright contraction in sales.

The supplied report does not establish the precise financial savings Canva expects from its reorganisation or identify every business function affected.

Melanie Perkins Calls 2026 Canva’s ‘Hardest Year Yet’

The internal communication provides a rare indication of the challenges confronting Canva’s leadership.

According to the supplied Business Insider report, Perkins told employees that the current year had been the company’s “hardest year yet.”

She also acknowledged that growth had slowed for the first time in a decade.

These remarks are significant given Canva’s long-standing reputation as a fast-growing technology business.

For a company accustomed to expansion, a change in growth momentum can require difficult decisions about staffing, product priorities and organisational structure.

The comments also suggest that leadership is communicating the seriousness of the situation to employees rather than describing the restructuring as a routine operational adjustment.

However, the excerpt does not provide Perkins’ complete explanation of the decisions or the full context of her remarks.

Further conclusions about management’s reasoning should therefore be based on the complete original memo or additional company statements.

Are 1,271 Canva Employees Being Laid Off?

One of the most important distinctions in the announcement is that 1,271 employees are affected by the restructuring, but this does not mean all 1,271 are being laid off.

The company has outlined different possible outcomes for affected workers.

Some employees may continue working at Canva in modified positions. Others could face relocation to different offices or locations. A separate group will lose their jobs.

This distinction is essential for accurately understanding the scale of the restructuring.

The available information does not specify how many roles will be eliminated, how many employees will be reassigned or how many could be required to relocate.

It also does not establish which countries, departments or employment categories will experience the greatest impact.

Until Canva provides a detailed breakdown, descriptions suggesting that the company has fired 22% of its workforce would be misleading.

The confirmed figure from the supplied account relates to the total number of employees affected by the wider organisational changes.

Canva Cuts 2026 Revenue Growth Forecast From 30% to 20%

The company’s revised revenue outlook is a central element of the story.

Canva reportedly entered the year expecting revenue to grow by approximately 30% but reduced that projection to 20% in August.

Although both figures imply year-on-year expansion, the difference is meaningful for business planning.

For illustration, if a company recorded $1 billion in annual revenue, growth of 30% would imply $1.3 billion in revenue the following year.

A 20% increase would instead imply $1.2 billion, or $100 million less than the higher-growth scenario.

This is only a mathematical example, not a statement about Canva’s actual revenue.

For an expanding software business, lower-than-expected revenue can influence decisions about staffing, marketing expenses, product investment and operational capacity.

However, the revised growth forecast alone does not demonstrate that Canva is unprofitable or facing a cash shortage.

Determining the company’s financial position would require additional information about actual revenue, operating costs, cash reserves and profitability.

Why Workforce Changes Matter for a Fast-Growing Technology Company

Staffing decisions can have substantial consequences for technology companies because their employees support product development, customer relationships, sales, security, operations and other functions.

A large restructuring can change how teams collaborate and how quickly new products and features are delivered.

It can also influence employee morale and retention, especially when workers face uncertainty about reporting structures, future responsibilities or workplace locations.

For leadership, the challenge is to align organisational resources with business priorities while maintaining the quality of products and services.

A restructuring may offer opportunities to simplify decision-making or reduce overlapping responsibilities, but it can also carry transition costs.

Whether Canva benefits from the changes will depend on how they are implemented and whether the company can retain the expertise required to compete effectively.

The supplied announcement does not provide enough information to judge the eventual operational or financial impact.

How Artificial Intelligence Is Changing the Design Software Industry

Canva’s reorganisation comes during a period of substantial change in the software and digital creativity markets.

Artificial intelligence is influencing how users generate images, create presentations, edit visual content and automate repetitive design tasks.

Established software providers and newer AI-focused businesses are developing tools that can complete some creative workflows with fewer manual steps.

For design platforms, these developments create opportunities to deliver new features, improve productivity and attract customers with evolving requirements.

They also intensify competition and can increase expectations around product capabilities and development speed.

However, there is an important distinction between the wider influence of AI on the design software industry and the specific reasons for Canva’s restructuring.

The supplied report does not establish that AI automation caused Canva’s job losses or that affected employees are being replaced by AI systems.

Such a conclusion would require direct evidence from Canva or other reliable reporting.

The company’s revised financial expectations and announced organisational changes are documented in the supplied material; the precise role of AI in those decisions remains unconfirmed.

What Could Canva’s Reorganisation Mean for Employees?

For affected employees, the implications will depend on their individual circumstances and the terms communicated by Canva.

Workers whose responsibilities are changing may need to adapt to new positions, reporting structures or team arrangements.

Employees asked to relocate could face decisions involving housing, family commitments, travel and future career plans.

Those whose roles are eliminated may need information about notice periods, severance arrangements, benefits and career support.

The applicable rules may vary according to employment contracts and local labour laws.

The supplied excerpt does not establish the compensation or transition assistance Canva is offering, so specific severance benefits should not be assumed.

Clear communication, transparent decisions and adequate transition support will be important in determining how employees experience the changes.

What Does the Restructuring Mean for Canva Users?

Canva’s announcement concerns its internal organisation, and the supplied report does not identify any immediate changes to customer subscriptions, pricing or access to the platform.

Users should therefore avoid assuming that existing products or services will be discontinued because of the workforce announcement.

At the same time, restructuring can influence how companies allocate resources to product development, customer support and future projects.

The effects, if any, will become clearer through subsequent company announcements and product updates.

For individual users, businesses and educational organisations that depend on Canva, the most relevant developments will be whether the company maintains service reliability and continues developing useful creative tools.

The current information does not justify claims that Canva’s platform is shutting down or that customer accounts are at risk.

Is Canva’s Restructuring Part of a Wider Technology Industry Shift?

Large technology companies periodically reassess their organisational structures when market conditions, investment priorities or business strategies change.

Such adjustments can occur even when revenue continues to grow.

The technology industry has also experienced increased pressure to demonstrate the commercial value of investments in emerging products and infrastructure.

For software businesses, maintaining an efficient operating structure can become particularly important as customer acquisition becomes more competitive.

Still, Canva’s particular circumstances should not automatically be equated with those of other technology companies.

Its reported slowdown, workforce changes and product strategy must be evaluated on their own evidence.

The broader industry context helps explain why software businesses may reconsider staffing, but it does not establish the exact causes of Canva’s decisions.

What Happens Next at Canva?

Several developments will help clarify the scale and consequences of the restructuring.

The first is whether Canva discloses the number of employees whose jobs will actually be eliminated, separately from those facing reassignment or relocation.

The second is whether the company provides more information about affected departments, countries and transition arrangements.

Another important indicator will be the company’s financial performance relative to its revised 20% revenue growth outlook.

Canva’s product development strategy and future hiring decisions will also offer insight into the company’s longer-term priorities.

For now, the reported announcement establishes that a substantial share of the workforce will experience organisational changes, but it leaves several important questions unanswered.

Conclusion: Canva Faces a Critical Test After Years of Growth

Canva’s decision to reorganise roles affecting approximately 22% of its workforce marks a significant development for the design software company.

The announcement comes after management lowered its 2026 revenue growth expectations and acknowledged an unusually difficult year.

For employees, the immediate concern will be understanding whether their positions, responsibilities or locations will change.

For customers and industry observers, the longer-term question is whether the restructuring helps Canva sustain product development and business growth in a competitive market.

The distinction between employees affected and employees laid off remains particularly important.

Until the company provides further details, the restructuring should be understood as a broad organisational change involving multiple possible employee outcomes, not a confirmed layoff of all 1,271 workers.

The coming months will show how Canva adapts its organisation as it moves into a new stage of growth.