# Canva Announces Major Restructuring and 1,271 Job Cuts Graphic design giant faces slowing growth and rising AI-related operational costs. - **Source:** [WA Today - Technology](https://www.watoday.com.au/rss/technology.xml) - **Published:** 2026-11-03 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/377a3d66-2611-4477-806a-fb9139f13471 ## Massive Workforce Reduction Canva is cutting 1,271 jobs, representing 22 percent of its total global workforce. CEO Melanie Perkins described this as the hardest moment in the company's thirteen-year history. The move follows a significant slowdown in growth, marking the first time in a decade that the design software giant has faced such performance challenges. ## Refounding the Organization The company plans to refound its internal structure by returning to small, empowered teams. Management layers will be reduced, and product, growth, and platform teams are being merged into a single organization. This shift aims to restore the agility and decision-making freedom that defined the company during its early developmental years. ## Rising AI Operational Costs The cost of serving over 200 million free users has surged due to AI integration. Co-founder Cliff Obrecht noted that the cost of goods per user has risen from negligible amounts to significantly higher figures. Consequently, the company delayed its major AI-led software update to protect its overall profit margins this year. ## Valuation and Revenue Pressures Canva downgraded its revenue growth forecast to 20 percent for this year, down from 38 percent in 2025. Major investors, including Blackbird and Airtree, have slashed their valuations of the company. Blackbird reduced its valuation by 17 percent to 34.9 billion dollars, reflecting broader investor concerns regarding AI impacts on software businesses. ## Operational and Office Shifts Sydney will serve as the primary hub for the newly consolidated product teams. Hybrid employees are now required to work from the office two to three days per week starting in January. The company maintains operations in 37 countries, with local requirements dictating the specific timing of employee notifications and departure processes. ## IPO and Investor Outlook A planned initial public offering, once anticipated for 2027, has reportedly been shelved for now. Despite holding 1.5 billion dollars in cash, the company has opted for private share sales annually since 2022. Investors like Airtree have extended fund lifespans, hoping for a liquidity event before their current investment vehicles expire in 2028. ## Support for Departing Staff Affected employees will receive at least six months of salary and 12 months of healthcare coverage. Departing staff are permitted to keep their company-issued MacBooks and can apply for 10,000 dollar grants to launch their own ventures. Access to internal communication tools like Slack and Gmail remains available until the week ends. ## Broader Sector Context This restructuring occurs during a difficult period for the Australian technology sector. Companies like Atlassian and WiseTech Global have also implemented significant workforce reductions this year. These moves highlight a wider trend of tech firms prioritizing profitability and operational efficiency over rapid expansion as global economic headwinds continue to challenge software valuations. ## Sources covering this story - https://www.watoday.com.au/technology/canva-unveils-mass-job-cuts-in-hardest-moment-of-its-history-20261104-p61b62.html?ref=rss&utm_medium=rss&utm_source=rss_technology — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._