Canva’s layoffs draw attention for unusually generous severance after the design platform announced major job cuts affecting about 22% of its workforce. The company is letting go of 1,271 employees as it reorganizes parts of the business and adapts to changes in the software industry.
The layoffs are part of a broader restructuring that also includes role changes and some employee relocations. Canva CEO and co-founder Melanie Perkins called it the hardest decision in the company’s 13-year history.
What makes the announcement stand out is the support package for affected workers. Canva will provide six months of salary to employees who lose their jobs, regardless of where they live. The company will also continue healthcare coverage and offer career support services.
That support includes resume reviews, interview coaching, job search assistance, and a year of LinkedIn Premium. Canva hopes these benefits will help former employees move into new roles more quickly.
The company is also changing its equity rules for some affected workers. Employees who joined within the last year will still be eligible for equity benefits after Canva removed the usual one-year vesting requirement.
In another unusual move, Canva is launching a fund that will provide $10,000 grants to former employees who want to start a business or support a community project. Workers can also keep their company-issued MacBooks, and Canva plans to create an alumni network to help connect displaced staff with new opportunities.
Key severance benefits:
- Six months of salary for all affected employees, regardless of location.
- Equity eligibility for employees who joined within the last year, by removing the typical one-year vesting period.
- Continued healthcare coverage.
- Career transition support, including resume assistance, coaching, interview preparation, and one year of LinkedIn Premium.
- A new fund that offers $10,000 grants for former employees who want to start a business or community project.
- Employees can keep their MacBook laptops.
The restructuring comes as Canva responds to slower growth and the rapid rise of artificial intelligence across the software industry.
Also Read: PH ranks 3rd worldwide in Canva AI use
For affected employees, the severance package provides financial support and job-search resources at a difficult time. It has also drawn attention to how companies can better support workers during large-scale layoffs.
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