Australian design software company Canva has announced a large-scale organizational overhaul. A total of 1,271 employees will face layoffs, role changes, or relocation requirements, accounting for 22% of the company’s total workforce. CEO Melanie Perkins said in an internal letter to employees on Wednesday that Canva has experienced its first growth slowdown in nearly a decade, and its existing organizational structure is no longer suited to its next stage of development, requiring restructuring to improve efficiency.

The restructuring will merge the product, growth, and platform teams into a unified "product organization," streamline management layers, consolidate overlapping responsibilities, and form smaller teams with greater decision-making authority. At the same time, Canva plans to move more product teams to its Sydney headquarters, and some employees will be required to relocate.

Affected departing employees will receive at least six months’ pay, one year of health insurance, job search support, and a one-year LinkedIn Premium membership, and may keep their company-issued MacBook. Perkins emphasized that this adjustment is not merely layoffs, but is intended to respond to technological changes and reconfigure organizational capabilities. She also noted that new technologies are changing the way users create and what they expect from software products, but did not explicitly identify AI as a direct cause of the restructuring.

Last year, Canva disclosed that it had 260 million monthly active users and $3.5 billion in revenue, and said it had achieved free cash flow profitability. Notably, another Australian tech company, Atlassian, also announced layoff plans this year, reflecting that tech companies are readjusting their organizational structures and resource allocation.