Design giant Canva is cutting or relocating more than 1,200 jobs, representing 22 percent of its global workforce, as part of a major restructure. The cuts affect staff who helped build the Australian-founded platform.
Chief executive Melanie Perkins announced the changes in an email to staff on Wednesday. She described the move as the hardest moment in the thirteen-year history of the company, and stated that some employees will face changes to their roles or be asked to relocate to centralised hubs. She added that the company must say goodbye to teammates and friends who contributed to building the platform.
The restructure impacts 1,271 people, according to the company. Canva stated that the overhaul focuses on collapsing layers and bringing more teams together in person.
Perkins said that relocating is a big decision for affected staff. She stated that the organisation is committed to making the process smooth with comprehensive support, though she did not specify the exact number of direct job losses.
Employees leaving the company will receive at least six months of salary. They will also retain healthcare coverage for 12 months in countries where that benefit applies.
Departing staff are permitted to keep their work laptops. They can also apply for grants of 10,000 US dollars, or 14,000 Australian dollars, to launch their own ventures.
The announcement adds to a wave of restructures across the technology sector. Other local firms have also announced reductions, including 1,600 redundancies at software company Atlassian, alongside job losses at Block and WiseTech Global.
Software companies across the industry are fighting to stay competitive against cheaper artificial intelligence disrupters while embedding AI tools into their own systems. Established firms have rejected the threat of a software-as-a-service apocalypse where AI makes specialised software redundant, but many have overhauled their business models.
Unlike Atlassian, Block and WiseTech, Canva did not mention artificial intelligence in its restructure announcement.
