Canva layoffs: Amid job cuts, check severance package offered to 1,271 employees - 6 months' salary, MacBooks and more
Graphic design platform Canva has announced a major organisational overhaul, marking the first restructuring exercise in its 13-year history. The changes will involve job cuts, team relocations and a reassessment of the skills and roles required by the company. A total of 1,271 employees, accounting for 22% of its workforce, will be affected.
However, the company has not specified how many employees will lose their jobs as part of the restructuring.
In an email sent to employees on November 4, Canva CEO Melanie Perkins outlined the changes and explained the reasons behind the decision.
“We have made the incredibly hard decision to make significant changes to how we’re organised, where some of our teams are based, and the roles and skills we need for the future. This means 1,271 people, or 22% of Canva, will be impacted.”
Explaining how the restructuring would affect employees, Perkins said: “For some people, this will mean changes to their roles or being asked to relocate to centralised hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today,” Perkins said.
Expressing regret over the impact of the decision, the CEO added: “I’m deeply sorry for the pain and disruption this will cause for everyone affected. While nothing can make this news easier, we will do everything we possibly can to support everyone affected,”
Canva has outlined several financial and other benefits for employees who are asked to leave the company. The severance package includes a minimum of six months' salary, continued healthcare benefits and additional support.
According to an update published on Canva's website, all departing employees will receive at least six months of pay, including statutory entitlements, irrespective of their location.
“Everyone will receive at least six months of salary, inclusive of statutory entitlements, regardless of location,” Canva announced.
The company will also waive the one-year vesting cliff for employees who joined within the last 12 months.
Healthcare support will continue for 12 months in countries where Canva currently offers the benefit. Additionally, departing employees and their family members will have access to Canva Care, the company's employee assistance programme (EAP), for another year.
Canva has also confirmed that employees leaving the organisation will be allowed to retain their company-issued Apple MacBooks.
“Everyone leaving will be able to keep their Canva MacBook as we know not everyone has a personal laptop,” Canva said.
Apart from financial assistance, Canva is extending career transition support to employees affected by the restructuring.
Those leaving the company will receive a one-year LinkedIn Premium subscription to help them explore new professional opportunities. They will also be offered personalised career assistance, including individual coaching sessions and interview preparation.
The company is also planning to create an alumni talent directory. Departing employees can voluntarily join the directory, which Canva has promised to share with its investors, business partners and industry contacts to help them find future opportunities.
In another initiative, Canva has announced the creation of the Canva Collective Fund. Under this programme, employees leaving the company who wish to launch their own ventures will be eligible for grants of US$10,000.
The company has clarified that it will not seek any equity or ownership in businesses or projects established using these grants.
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