Canva has announced a major restructuring that will affect 1,271 employees, representing around 22% of its workforce. The changes include role adjustments, relocation requests and job cuts, CEO Melanie Perkins said in a memo to employees.

The move comes as the design software company faces slower growth. Canva lowered its 2026 revenue growth forecast from 30% to 20% in August. Perkins described the current year as the company’s hardest yet, saying growth had slowed for the first time in a decade.

Canva plans to bring its Product, Growth and Platform teams together into one product organization. The company will also reduce layers of management, combine overlapping responsibilities and broaden roles to give teams greater ownership and flexibility.

The restructuring will also increase in-person collaboration. Sydney will become the primary location for more product teams and other roles that require close coordination. Starting in January, most hybrid employees are expected to work from an office two to three days a week, depending on their area.

Canva said employees leaving the company will receive at least six months of salary, including statutory entitlements, and 12 months of healthcare coverage in countries where it is provided. Support will also include career coaching, interview preparation, one year of LinkedIn Premium and continued access to Canva’s employee assistance program for 12 months.

The company is also launching the Canva Collective Fund, offering US$10,000 grants to departing employees who want to start a business or support a community project. Applications will be open until December 14, and Canva will not take ownership or equity in projects supported by the fund.

The restructuring is part of Canva’s effort to reorganize around smaller, more empowered teams and prepare for its next stage of growth. The company plans to discuss the changes and its future direction at a company-wide meeting on November 10.