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Canva is restructuring its operations in a move affecting 1,271 employees, or 22% of its workforce, as the design software company responds to growth and changes in the technology industry.
The overhaul includes layoffs, changes in employee responsibilities, relocation requests and a push for greater personal collaboration. Canva did not specify how many employees would lose their jobs.
Canva co-founder and CEO Melanie Perkins announced the change in her message to employees Tuesday, describing the restructuring as the company’s most difficult moment in its 13-year history.
“This has been the hardest year yet, and while we were together at the beginning of the year, our growth has slowed down,” Perkins wrote.
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Canva co-founder and CEO Melanie Perkins announced the change in her message to employees Tuesday. (Joel Carrett/AAP/via Reuters)
The restructuring comes as Canva adapts to new technologies that are changing the way people create content and what they expect from their software products. The company says it needs to reorganize its team to a smaller one with greater autonomy as it prepares for its next phase.
Under the new structure, Canva will consolidate its product, growth and platform teams into one product organization. The company also plans to reduce management layers, consolidate overlapping responsibilities and consolidate narrower specialized roles into more 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 be the main home for more of Canva’s product team and other departments.
Starting in January, most hybrid employees will work from the office two to three days per week, depending on location.
Perkins said the Canva platform is used by hundreds of millions of people around the world. The company has teams in 37 countries.
The company has teams in 37 countries. (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
For employees who leave the company, Canva says it will provide a severance package that includes at least six months of salary, including legally required entitlements, regardless of location. The company will also provide 12 months of health care coverage in countries that currently offer these benefits.
Additional support will include removing the one-year vesting cliff for employees who joined in the past year, along with career coaching, interview preparation and other job search assistance.
Canva will also offer $10,000 in funding to departing employees who want to start a business or pursue community projects through the new Canva Collective Fund. The company said it will not seek ownership or equity in the project.
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Canva is expected to provide more details about the restructuring and future plans during a company meeting scheduled for November 10.