Australia based design platform, Canva is ready for a significant reorganization as it is laying off 22% of its global personnel. According to estimates, the layoffs have impacted 1,271 workers.
Melanie Perkins, who is the CEO and co-founder of Canva, declared the layoffs in an internal memo, calling it the "most difficult moment" in the company's 13-year existence.
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Over 5,700 people work for the organization in 37 nations, including India. Which teams or areas will be most severely impacted has not been revealed.
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Canva Layoffs: What Compensation Will Employees Get?
Canva is trying to soften the blow for 1,271 employees with an unusually extensive severance package.
Employees who are laid off are allowed to keep their company-issued MacBooks and receive a one-year LinkedIn Premium subscription.
The severance package also includes career coaching, healthcare support and financial assistance for those interested in starting their own businesses.
Here Is What Employees Affected By The Layoffs Can Expect:
- Six months' salary: Every affected employee will receive at least six months' salary, inclusive of statutory entitlements, regardless of their location.
- Free MacBooks: Employees will be allowed to keep their company-issued MacBooks. Perkins said the decision was meant to ensure departing employees would still have a laptop, especially those without a personal device.
- One year of LinkedIn Premium: Canva will provide a 12-month LinkedIn Premium subscription to help employees with their job searches and networking.
- Career coaching: Employees will receive one-to-one career coaching and interview preparation. Canva's Talent Acquisition team will also help with resumes and interview practice.
- Healthcare support: Employees will receive 12 months of continued healthcare coverage in countries where Canva offers the benefit.
- Employee assistance: Canva Care, the company's employee assistance programme, will remain available to departing employees and their families for 12 months.
Canva Offers Financial Support To Employees After Layoffs
Canva is extending financial support to employees looking to start their own ventures after leaving the company.
Through its Canva Collective Fund, former employees can apply for grants of up to $10,000 to start a business or work on a project that benefits their local community.
The company has made it clear that it would not pursue ownership or interest in companies or initiatives developed with the help of these grants. Employees who wish to apply must register by December 14.
Additionally, Canva is developing an alumni talent database that is opt-in. To assist departing employees in finding new employment, the directory will be sent to partners, investors, and its broader industry network.
Workers will have access to Gmail and Slack until the end of the week. This will allow them time to let their coworkers know and choose how they announce their departure.
What's The Reason For Layoffs
The generous severance package comes at a time when Canva is facing a challenging year. The company's growth slowed for the first time in 10 years. Perkins said Canva had considered several options before concluding that minor changes would not be enough to address the situation.
As part of the restructuring, Canva plans to bring its product, growth and platform teams under one product organisation. It also aims to reduce management layers and combine teams with overlapping responsibilities. The idea is to create smaller teams where employees have more ownership and can make decisions faster.
Sydney will become the main hub for more of Canva's product teams. As a result, some employees may be asked to relocate, while others could be moved into different roles.
Canva is also changing its work-from-office policy. Starting January, most employees working in a hybrid setup will be expected to come to the office two to three days a week. This marks a shift from the company's earlier approach, which offered greater flexibility and supported remote working.
Canva Layoffs: AI Pressure And Slowing Growth
The restructuring comes as artificial intelligence reshapes the creative software industry. AI tools are making it easier to create images, presentations and other visual content. This is also raising questions about how traditional design platforms will compete and evolve.
Canva has been pouring money into AI features, reshaping its platform around them.
The company's valuation has also been a concern for investors. Canva's largest venture backer, Blackbird, reportedly slashed its valuation by 17 percent to $34.9 billion in August 2026.
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