Canva restructure to impact a fifth of its workforce ahead of Christmas

The design giant's announcement will impact 1,270 jobs, pointing to slowing growth and "new technology" changing how people create and use products.

Sydney will be made the primary hub with some staff asked to relocate.

A package for outgoing employees includes at least six-months' salary and other supports while they find other work.

More than one in five jobs will be impacted at software company Canva, as it restructures amid slowing growth and rapid technological change.

Canva Co-Founder and CEO Melanie Perkins told staff in a memo the restructure was the "hardest moment in our 13-year history".

The changes will affect about 1,270 jobs, or 22 per cent of its global workforce.

Ms Perkins said Canva's growth had slowed "for the first time in a decade", arguing small changes would not be enough to prepare the company for its next phase.

Canva said "new technology" was also changing how people created and used products. The company did not explicitly mention artificial intelligence in the announcement.

As part of the changes, some employees may be asked to relocate, with Sydney becoming the primary home for Canva's product teams.

It currently has operations in Melbourne, Brisbane, Adelaide and Perth and operates in 37 countries.

"From January, we expect most Hybrid Canvanauts to spend around two to three days in the office each week, depending on what makes sense in your area," Ms Perkins said.

A package for outgoing employees includes at least six-months' salary, health and wellbeing support, and the removal of the one-year equity vesting cliff for some recently hired staff.

Canva will also offer $US10,000 grants through a new fund for departing employees who want to start a business or pursue a community project.

The company said it had explored a range of alternatives and had come to the "difficult conclusion that small changes won't be enough".

"We need to re-found Canva, getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership and focus on what matters most for our community," Ms Perkins said.

Canva grew out of a Perth-based started-up founded by Ms Perkins and Cliff Obrecht, later joined by co-founder Cameron Adams.

It became one of Australia's biggest technology success stories, growing into a global design platform used by hundreds of millions of people.

Job cuts have become increasingly common across Australia's tech-sector, including Atlassian's 1,600 jobs slashed earlier this year, saying AI would allow it to reduce headcount and redirect resources.

Block — which owns Afterpay and logistics software company Wise Tech Global — also announced major workforce cuts.