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Canva to cut 22 per cent of staff in AI-driven restructuring
Developing story first seen 2 hours ago
Canva plans to affect 1,271 staff as it restructures to return to smaller, more empowered teams. Chief executive Melanie Perkins said the company had concluded that minor changes would not be enough to prepare it for the next decade, as artificial intelligence reshapes the workforce.
Some employees will lose their jobs, while others will be asked to relocate to centralised hubs; the cuts amount to 22 per cent of Canva’s workforce. Departing staff will receive at least six months’ salary, a year of healthcare where provided, keep their work laptops and may apply for grants of $14,500 to start ventures. The company plans to merge several teams, reduce management layers, make Sydney its main product base and require hybrid staff to attend the office two or three days a week from January.
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In short
- Canva says 1,271 staff will be affected by its restructuring.
- The changes aim to restore smaller, more empowered teams.
- Departing staff will receive pay and other support.
How this story developed
- 8 minutes ago Canva plans to affect 1,271 staff as it restructures to return to smaller, more empowered teams. Chief executive Melanie Perkins said the company had concluded that minor changes would not be enough to prepare it for the next decade, as artificial intelligence reshapes the workforce.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Canva could argue that AI is changing how design software is built and that acting early will help it remain competitive and sustainable over the next decade. Smaller teams and fewer management layers may allow quicker decisions, while the severance, healthcare and venture grants offer meaningful support to those affected.
The case against
Employees and critics could argue that a profitable company should explore alternatives to large-scale redundancies, such as retraining or redeployment, before removing 22 per cent of its workforce. Restructuring and relocation can impose serious costs on staff and communities, and the promise of future competitiveness does not guarantee that the cuts are necessary or that the benefits will be shared fairly.
Explained simply
Canva is an Australian technology company best known for an online design platform that lets people create presentations, posters and other visual materials. It was founded by Melanie Perkins, who is now its chief executive, and has grown into a large global business.
The company is changing how its staff are organised, with some roles ending and some employees asked to move to central hubs. The changes also include combining teams and reducing management layers, while making Sydney its main product base.
The restructuring comes as artificial intelligence changes how technology companies develop products and organise work. Canva’s decisions matter to its employees and offer an example of how a major technology firm is adapting its workforce and offices to those changes.
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Originally published by Daily Mail as “Aussie software giant Canva cuts hundreds of jobs as AI continues to reshape the workforce”.