Canva is announcing changes and layoffs affecting 22 percent of its staff

Canva plans a major restructuring affecting 1,271 employees, or 22 percent of its workforce. The changes will include role adjustments and relocation requests as well as layoffs, according to co-founder and CEO Melanie Perkins. She says incremental changes would not prepare the company for the coming decade, and describes the overhaul as a return to small, empowered teams with more ownership and room to make decisions.

The company will combine its Product, Growth, and Platform teams into a single product organization, reduce management layers, and consolidate responsibilities that overlap. Sydney will become the main base for more product teams and some other roles where close collaboration is considered important. From January, most hybrid employees will be expected to work from an office two or three days a week, depending on their area. Those who leave will receive at least six months’ salary, a year of healthcare coverage, and career support. The announcement follows Squarespace’s disclosure of cuts affecting 19 percent of its staff.