Canva lays off 1,271 employees, offers 6 months' salary and free MacBooks

The technology industry’s ongoing wave of job cuts has now reached Canva. Canva, the design platform says it will cut about 22, per cent of its staff which means 1,271 people will lose their jobs. What makes this announcement stand out is not the size of the layoffs but also the support package that Canva is giving to the people who are affected.

Canva’s decision comes at a time when the company is facing growth rising artificial intelligence costs and stronger competition. Co-founder and CEO Melanie Perkins shared the decision in a memo. She recognised the work of employees. At the time she stressed the importance of getting the organization ready, for its next stage.

“Over the thirteen years we have taken a dream from a pitch deck and turned it into a platform that hundreds of millions of people use. None of this would have been possible without the talent, imagination and care of every person who has been part of our journey. Success, in our first chapter does not guarantee success in the next. This has been our year yet and as we shared earlier this year our growth has slowed for the first time in a decade " the memo cited by news reports read.

Why is Canva restructuring its workforce?

Apart from reducing employee numbers, Canva is reportedly restructuring its internal teams by bringing product, growth and platform divisions closer together. The objective is to improve coordination and eliminate communication gaps. Reports also suggest that the company wants employees to handle broader responsibilities instead of concentrating on highly specialised roles.

The company is also reconsidering its remote-working arrangements, with employees reportedly being asked to spend a few days each week in the office.

Meanwhile, rising AI development costs have added pressure. Canva has been investing in its own AI models to reduce dependence on external providers, but these expenses have affected its financial outlook. The company has reportedly lowered its revenue growth forecast from 30 per cent to 20 per cent.

Competition from AI-powered platforms and chatbots, including ChatGPT and Gemini, has also intensified, as their image-generation capabilities allow users to create presentations, posters and other visual content with greater ease.

Canva's severance package stands out

Despite the scale of the workforce reduction, Canva's approach to employee support has attracted considerable appreciation online. Importantly, the 1,271 affected positions do not necessarily mean every employee is losing their job, as the restructuring also involves role transitions and relocations.

Employees leaving the company will receive at least six months' salary as severance, along with applicable statutory benefits, irrespective of their location. They can also retain their company-issued MacBooks, giving them access to a personal work device while searching for new opportunities.

The support package includes a one-year LinkedIn Premium subscription, individual career coaching, resume assistance and interview preparation. Canva is also establishing an optional alumni directory to connect former employees with potential employers and professional networks.

The decision has prompted positive reactions from professionals across the technology industry.

“Layoffs affect people’s livelihoods and their families. Is a little more empathy too much to ask for? Companies should treat employees as people, not merely as resources. What Canva has done is an example of how layoffs can be handled with greater empathy and consideration. The unfortunate reality is that this remains an exception rather than the norm. We should be asking companies to make this the standard way of treating people when they have to let them go,” said Pratham Kohli, an AI engineering professional.

“Canva laid off 22% of their workforce, but they set a benchmark and won the hearts of many employees. A classic example of how to handle such sensitive things generously,” said Anubhav Sethi, a software engineer, in his LinkedIn post.

Former employee Shraddha Khule also shared her experience on Instagram, describing the organisation as supportive throughout her employment and maternity leave.

“Being laid off from Canva was not something I expected. I joined the company in 2023, and this is the first time I have experienced something like this. I am still processing it. Canva has been hands down the best organisation I have worked with, not just during my time there but even while I was on maternity leave. The company has always been supportive, including when it came to extending my relocation to Dubai temporarily,” she said.

“I am really bummed that I will no longer have the joy of telling people that I work at Canva. It is sad to see this chapter come to an end. What amazed me the most, though, was how well Canva handled the entire process and the transition for employees who were impacted.”

Healthcare and financial assistance for affected employees

Canva's assistance also extends to healthcare. Employees will receive up to 12 months of continued health coverage in countries where the company offers this benefit. They and their families will also retain access to Canva Care, its employee assistance programme, for one year.

The company has additionally made adjustments to its employee stock arrangements. Workers who joined within the past year will be exempt from the standard one-year vesting cliff, allowing them to retain equity that would otherwise have remained unvested.

Furthermore, Canva is offering $10,000 grants through its Canva Collective Fund to affected employees interested in launching businesses or community initiatives. Notably, the company will not seek equity in exchange for this financial assistance.

Job cuts show how hard it is for technology companies to deal with changing markets. Canvas way has sparked talk, about employee welfare. Canvas severance package shows how companies can give money and job help even when tough staff cuts must happen.

ABOUT THE AUTHOR

Kahekashan

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Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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