A Major Workforce Shake-Up at Canva
Canva has announced that it is laying off over 1,200 employees globally. Those who are affected will get an extensive severance package. The Australian graphic-design platform is eliminating 1,271 positions, representing approximately 22% of its global workforce, in the biggest restructuring exercise in its 13-year history. The decision comes amid slowing business growth, intensifying competition and rapid changes in the design industry driven by artificial intelligence (AI).
While the scale of the layoffs has raised concerns about job security in the technology sector, Canva's extensive employee-support package has drawn attention for going beyond conventional severance arrangements.
Why Is Canva Restructuring?
CEO Melanie Perkins announced the decision on November 3, describing it as “the hardest moment” in the company's history. She indicated that Canva needed to reinvent its organisational structure to prepare for the next decade.
The restructuring will affect 1,271 employees through job eliminations, role changes and relocation requirements to centralised offices.
Several factors have contributed to the decision:
· Slowing growth: Canva has experienced a challenging year as its expansion has moderated.
· AI disruption: Generative AI is transforming graphic design, content creation and digital publishing, requiring changes in skills and business priorities.
· Investor pressure: Reports have also highlighted concerns following a valuation reduction by a major US backer.
· Strategic reset: Management wants to reshape the organisation and strengthen its ability to compete in an increasingly AI-driven market.
What Employees Will Receive: An Extensive Support Package
Canva has announced a comprehensive assistance programme for departing employees, regardless of their geographical location.
Key benefits include:
· Six months' salary: At least six months of pay, including applicable statutory entitlements.
· Healthcare protection: Up to 12 months of healthcare coverage, where applicable, and continued employee-assistance access.
· Company equipment: Departing employees can retain their Canva-issued MacBooks.
· Career assistance: Individual coaching, interview preparation, résumé support, access to an alumni talent network and one year of LinkedIn Premium.
· Entrepreneurship grants: Eligible former employees establishing ventures or community projects can apply for $10,000 grants through the newly introduced Canva Collective Fund.
· Equity protection: The company is removing the one-year vesting cliff for certain recently hired employees.
This package is considerably more extensive than conventional severance arrangements. It provides financial security while helping employees pursue alternative employment or entrepreneurship.
Employees React: Shock, Gratitude and Uncertainty
· Former content-design manager Popovs described herself as “sad and devastated”, while expressing gratitude for her experience at Canva.
· Another employee, Artemi Ollin, called the experience “déjà vu”, recalling earlier layoffs at Google. He encouraged colleagues to prioritise their wellbeing and support departing workers through referrals and recommendations.
· Former operations business partner Monica Gonzalez Castro also shared an emotional farewell, thanking colleagues and mentors while preparing for her next professional chapter.
A Generous Exit Package Cannot Erase the Human Cost
Canva's restructuring highlights the difficult balance between technological transformation and workforce stability. Its severance package demonstrates an effort to protect employee dignity and preserve professional relationships. However, six months of salary, healthcare and career assistance cannot completely compensate for the uncertainty of losing employment. The larger message is that even successful technology companies are not immune to AI-driven disruption and changing market conditions. As businesses prepare for an increasingly automated future, the real test will be whether innovation creates sustainable opportunities rather than simply reducing the workforce.
(With agency inputs)
