Australian design platform Canva has announced a major restructuring, according to which it is firing 1,271 employees due to AI competition.
According to the officials of the company, 1,271 employees or about 22% of its global workforce, have been asked to leave their jobs, as it faces slowing growth and increasing competition from artificial intelligence tools.
The company confirmed the changes on November 4, 2026, saying they would involve job cuts, changes to employees’ responsibilities and relocation of some staff.
However, Canva has not disclosed how many employees will ultimately lose their jobs.
Chief executive and co-founder Melanie Perkins said the company needed to change the way it operated after experiencing its first slowdown in growth in a decade.
She said advances in technology were changing how people create content and what they expected from design platforms.
The restructuring comes as AI tools developed by companies such as OpenAI and Google increasingly allow users to generate images, presentations and other creative content.
Canva is also investing in its own artificial intelligence technology, although the company faces rising costs associated with these efforts.
According to a report by TechCrunch, Canva has lowered its revenue growth forecast for 2026 from 30% to 20%, partly because of increasing AI-related expenses.
Under the restructuring, Canva plans to combine its Product, Growth and Platform divisions into a single organisation.
The company will also reduce management layers, merge overlapping responsibilities and give employees broader roles.
Sydney will become the main location for more product teams, meaning some employees will be asked to relocate.
From January 2027, most employees working under hybrid arrangements will also be expected to attend the office two to three days a week.
Canva has outlined a support package for employees leaving the company.
Affected staff will receive at least six months’ salary, including statutory entitlements, regardless of their location.
The package also includes 12 months of healthcare coverage where available and continued access to the company’s employee assistance programme.
Departing employees will be allowed to keep their company-issued MacBooks and will receive career coaching, interview preparation support and one year of LinkedIn Premium.
The company is also offering grants of $10,000 to eligible departing employees who want to establish businesses or community projects. Applications are open until December 14.
The restructuring marks a significant change for Canva as it adjusts its business strategy amid slower growth, rising costs and growing competition from AI-powered design tools.
