US — The Verge
Canva is announcing changes and layoffs affecting 22 percent of its staff
Software1 min read
Canva, the design software company, is cutting about 22 percent of its staff and changing how it is organized. The company says 1,271 people are affected.
What happened
Canva's co-founder and CEO, Melanie Perkins, announced big changes today. Some employees will get new roles or be asked to move to central hubs. Others will lose their jobs. Perkins said small changes were not enough, so the company needs to "refound" itself. That means going back to small teams that can make their own decisions.
Key numbers and facts
- 1,271 people are affected, which is 22 percent of Canva's staff.
- People who leave will get at least six months of salary.
- People who leave will get twelve months of healthcare coverage.
- Starting in January, most hybrid workers must spend 2 to 3 days a week in an office.
- Sydney will become the main home for more of Canva's product teams.
How the company is changing
Canva will combine its Product, Growth, and Platform teams into one product group. The company also wants fewer layers of managers and less overlap in jobs. The goal is to make work faster and clearer for the company's users.
Why it matters
Canva is a large, well-known company, so cutting more than a fifth of its workers is a big deal for the people losing jobs. It also shows that many tech companies are cutting staff and changing how they work. The Verge notes that Squarespace announced layoffs of 19 percent of its staff the day before.
What to watch
- How many employees move to the Sydney hub or other central offices.
- Whether the new office rules for hybrid workers in January cause changes for employees.
- How the new product group affects Canva's software and new features.
Glossary
- Canva
- A company that makes an online tool for designing posters, videos, and other visual content.
- Squarespace
- A company that offers tools for building websites and online stores.