Canva Cuts 1271 Jobs: Growth Slows for First Time
1271Canva employees laid off or relocated
"2026 has been our hardest year yet. After exploring a wide range of alternatives, I've come to the difficult conclusion that small changes won't be enough.
"Melanie Perkins - CEO of Canva
What departing Canva staff receive
| Item | Detail |
|---|---|
| Minimum severance | 6 months salary (inclusive of statutory entitlements regardless of country) |
| Startup grant | US$10,000 |
| Health insurance | 1 year |
| MacBook | Keep the laptop |
| LinkedIn Premium | 1 year membership |
What we know
1,271 employees (22% of global workforce) face layoffs, role changes or mandatory relocation to Sydney headquarters.
Product, growth and platform teams are being merged into a single "Product Org" to cut layers and overlap.
A return-to-office requirement of 2-3 days a week takes effect January 2027.
Canva's 2026 revenue growth forecast was cut from 30% to 20%, slowing for the first time in a decade.
The company remains profitable on a free-cash-flow basis; revenue was $3.5 billion in the prior year.
Competition from free generative AI design tools is cited as an underlying structural pressure.
What is not yet known
The exact country-by-country breakdown of which roles are cut versus relocated.
Whether the valuation (downgraded roughly 20%) will affect the targeted 2027 US IPO timeline.
How many employees will choose relocation to Sydney versus accepting severance.
What happens next
Individual meetings with affected staff (underway from 4 November 2026)
Company-wide all-hands meeting on 10 November 2026
Return-to-office mandate takes effect January 2027
US IPO targeted for 2027 (timeline under review given valuation cut)
Sources: Bloomberg (primary, 3 Nov 2026), BBC Business, The Guardian, The Register, ACS/IT News Australia. Growth rate figures from Bloomberg via Startup Daily. Severance package from ACS. Cover image: K-Tech Office, Bengaluru, Wikimedia Commons, CC0.