By Canva Group will cut 1,271 jobs, around 22% of its workforce, as part of a restructuring after its growth slowed for the first time in a decade, according to a report by Reuters published by ETHRWorld. The Australian graphic design platform announced the cuts on Wednesday, with co-founder and CEO Melanie Perkins framing the move as an effort to “refound Canva” around smaller, empowered teams.
The restructuring will merge Canva’s Product, Growth and Platform teams into a single Product Org, consolidate roles and simplify reporting layers. Sydney will become the main base for more product teams, and some staff will be asked to relocate. From January, most hybrid employees are expected in the office two to three days a week. Departing employees will receive $10,000 grants for future endeavours.
What the restructuring means for affected employees
The scale of the cuts places Canva among the larger Australian tech layoffs of recent years. For affected employees, the $10,000 grant is a departure payment separate from any statutory entitlements they may receive under Australian law. Under the Fair Work Act 2009, employees made redundant are generally entitled to redundancy pay based on their continuous service, unless an employer is exempt or obtains a Fair Work Commission order to reduce it.
The $10,000 grant appears to be a flat payment regardless of tenure or role, which means longer-serving employees may receive less relative to their statutory redundancy entitlements than newer hires. HR teams elsewhere in Australia should note that Canva’s approach is not a template for meeting legal obligations. Employers must still calculate redundancy pay, notice periods and any accrued leave entitlements according to the National Employment Standards and any applicable award, enterprise agreement or contract.
Why the office mandate matters for hybrid work in Australia
Canva’s shift to two to three office days per week from January is notable because the company has previously been associated with flexible work arrangements. The announcement does not state whether the mandate applies to all hybrid employees or only those in specific teams or locations. It also does not clarify how the mandate interacts with the request for some staff to relocate to Sydney.
For Australian HR and payroll teams, the relocation element raises practical questions. If an employee refuses to relocate and their role is made redundant, the employer must follow genuine redundancy processes. If the role still exists but in a different location, the situation may be treated as a redundancy if the employee cannot reasonably commute. Employers should document the consultation process carefully, as Fair Work Commission claims often turn on whether an employer took reasonable steps to redeploy an employee before making them redundant.
Payroll considerations for large-scale redundancies
Payroll teams processing a redundancy of this size face several compliance obligations in Australia. Final pay must include:
| Payment type | Key requirement |
|---|---|
| Redundancy pay | Based on continuous service, unless exempt or reduced by FWC order |
| Notice pay | Paid in lieu if notice is not worked, based on service length |
| Accrued leave | Annual leave and any applicable long service leave paid out |
| Superannuation | Super guarantee applies to ordinary time earnings, not redundancy pay |
The $10,000 grant is likely to be treated as an employment termination payment or a separate payment depending on how Canva structures it. Payroll teams should confirm the correct tax treatment with the Australian Taxation Office, as lump sum payments on termination can attract concessional tax treatment up to certain caps.
What this signals for Australian tech employers
Canva’s announcement is significant because the company has been a high-profile Australian success story. A first growth slowdown in a decade, followed by a restructuring of this scale, suggests that even well-capitalised private companies are reassessing headcount as growth expectations shift.
The consolidation of Product, Growth and Platform teams into a single Product Org reflects a broader trend among technology companies to reduce handovers and give teams end-to-end ownership. For HR leaders, the relevant lesson is not the specific structure but the speed at which Canva moved from identifying fragmentation to announcing cuts. Australian employers considering similar restructures should remember that consultation obligations under the Fair Work Act apply when major workplace changes are proposed, and failure to consult can expose an employer to claims even where the redundancy itself is genuine.
Sources: ETHRWorld
Photo: Bogdanov 001 by Ivan Bogdanov, Public domain
