Canva is preparing for one of the largest workforce restructurings in its history, with changes expected to affect 1,271 employees, representing 22 percent of its workforce. The Australian-founded design software company announced the plan on November 3, explaining that the changes will involve a combination of job departures, role adjustments and possible relocations.

The company has not yet disclosed how many employees will ultimately leave. Some workers may lose their positions, while others could remain with Canva under different responsibilities or be asked to move to another location.

The announcement comes as co-founder and CEO Melanie Perkins described the current period as the company's "hardest year yet," following a slowdown in growth for the first time in a decade.

Six Months of Salary and Continued Healthcare

Alongside the restructuring, Canva has outlined a substantial support package for employees who leave the company.

Every departing worker will receive at least six months of salary, in addition to any statutory entitlements applicable to their circumstances, regardless of their location.

The package also addresses employees who have not yet completed a full year at the company. Those workers will not lose their shares or equity solely because their employment ends before reaching their first anniversary.

Healthcare and employee support services are also included. Departing employees will retain healthcare coverage for 12 months and receive one year of access to Canva Care, the company's Employee Assistance Program. The service also extends to family members.

Growth Challenges Behind the Restructuring

The scale of the planned changes highlights the challenges facing Canva as it reassesses its workforce and organizational structure amid slower growth.

Although the company has not provided a detailed breakdown of the positions affected or the number of employees expected to depart, the announcement makes clear that the restructuring extends beyond straightforward job cuts. Changes to existing roles and relocation requests are also part of the plan.

The exit package has become a significant feature of the announcement, offering departing employees financial support and continued access to healthcare and assistance services during the transition.

Newsweek said it had contacted Canva for further comment and was awaiting a response.