More than 1200 jobs will be impacted by a major restructure at software design firm Canva, with some roles to be cut and others relocated.
Founder and chief executive of the Sydney-based company Melanie Perkins broke the news in a company-wide note on Wednesday.
As many as 1271 staff - or 22 per cent of the firm's headcount - will be impacted by layoffs, role changes or relocations as it confronts a year of slowed growth.
"This is without doubt the hardest moment in our thirteen-year history," Ms Perkins wrote in the note, which was also shared to the firm's website.
"Behind every decision is someone we care deeply about, and I know the consequences will be very real for those directly affected, their families, friends and teammates."
It comes amid concerns design firms may lose business to an increasingly competitive artificial intelligence industry.
"This has been our hardest year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade," Ms Perkins said.
"After exploring a wide range of alternatives, I've come to the difficult conclusion that small changes won’t be enough."
Canva will look to "refound" the business, including by merging some functions and making Sydney the primary home for more product teams.
From January, most hybrid staff will be expected to spend two to three days in the office.
Impacted staff will receive at least six months' salary, inclusive of entitlements and a year of continued healthcare coverage.
The firm will also launch a fund to provide grants of US$10,000 to support departing staff looking to launch businesses or give back to communities.
