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Canva is restructuring its operations and affecting 1,271 employees, or 22% of its workforce, as the design software company responds to slowing growth and changes in the technology sector.
The overhaul includes layoffs, changes in employee responsibilities, relocation requests and a push for more in-person collaboration. Canva did not say how many employees would lose their jobs.
Canva co-founder and CEO Melanie Perkins announced the changes in a message to employees Tuesday, describing the restructuring as the company’s most challenging moment in its 13-year history.
“This has been our most challenging year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade,” Perkins wrote.
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Canva co-founder and CEO Melanie Perkins announced the changes in a message to employees on Tuesday. (Joel Carrett/AAP/via Reuters)
The restructuring comes as Canva adapts to new technologies that are changing how people create content and what they expect from software products. The company said it needed to reorganize around smaller teams with greater autonomy to prepare for its next phase.
Under the new structure, Canva will consolidate its product, growth, and platform teams into a single product organization. The company also plans to reduce management levels, consolidate overlapping responsibilities and incorporate narrower specialized roles into broader positions.
The restructuring comes as Canva adapts to new technologies that are changing the way people create content. (Jaque Silva/SOPA Images/LightRocket via Getty Images)
The changes will also affect where and how employees work. Sydney will become the home base for more of Canva’s product teams and some other departments.
Starting in January, most hybrid employees are expected to work in the office two to three days per week, depending on their location.
Perkins said the Canva platform is used by hundreds of millions of people around the world. The company has teams located in 37 countries.
The company has teams located in 37 countries. (Photo illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
For employees who leave the company, Canva said it will offer severance packages that include at least six months’ salary, including legally required entitlements, regardless of location. The company will also offer 12 months of continuous healthcare coverage in countries where it currently offers this benefit.
Additional support will include waiving a one-year vesting period for employees who joined the company within the past year, as well as career coaching, interview preparation and other job search assistance.
Canva will also offer $10,000 grants to departing employees who want to start a business or pursue a community project through a new Canva collective fund. The company said it would not seek ownership or equity in these projects.
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Canva is expected to provide more details on the restructuring and its future plans at a company-wide meeting scheduled for November 10.
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