Canva has removed 1,271 employees from its global workforce, but beyond the job cuts, the Australian design platform is making headlines for its “considerate” severance package. The company has reportedly offered affected employees six months of salary, 12 months of healthcare coverage, and the option to keep their company-issued MacBooks, among other things.
As the news regarding the layoffs and package went viral, many are praising the company for knowing “how to handle” such situations.
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Canva Layoffs
Amid widespread AI-led disruption, Canva is cutting around 22% of its global workforce. The layoffs affect approximately 1,271 employees. Co-founder and CEO Melanie Perkins has announced the decision in an internal memo, describing it as the “most difficult moment” in the company's 13-year history.
Canva employs more than 5,700 people across 37 countries. As of now, details regarding which teams of locations are impacted are not known.
The layoffs are the latest in the tech industry, triggering discussions surrounding the impact of AI on the future of jobs. However, Canva's approach to supporting departing employees has attracted considerable attention.
The reported severance package includes:
- Six months of salary as severance pay.
- 12 months of healthcare coverage.
- One year of LinkedIn Premium subscription.
- Permission to keep company-issued MacBooks.
- Career coaching and professional transition support.
- Removal of the equity vesting cliff.
- A $10,000 fund for employees interested in starting their own businesses.
The details of the package are now making waves online, with many people comparing it with similar announcements by other companies. "This is a masterclass in how to handle layoffs. Today, Canva CEO's announcement is next-level classy. Thoughtful, honest and generous. CEOs worldwide should take note!” Knot. Dating CEO Jasveer Singh highlighted this in a LinkedIn post.
A similar X post by a user, Shweta Kukereja, also praised Canva for being considerate towards laid-off employees.
“We need more founders like thissss…,” her post read.
Another similar X post read: “Sad to hear about Canva's layoff, but they handled it well. This sets an example for handling these situations for people who worked hard for the company.”
Similar sentiments were echoed across platforms, with many calling for more companies to adopt a similar approach to layoffs by prioritising employee welfare.
READ | Canva Layoffs Hit 1,271 Employees, But The Severance Package Has Everyone Talking
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