Key points:
- Canva This reorganization affects 1,271 employees, which is approximately 22% of their total workforce.
- Leaving employees will receive generous compensation including six months' salary.
- Canva will also provide a startup subsidy of $10,000 to help former employees start their own businesses.
Australian design software company Canva recently announced a major reorganization that affected 1,271 employees, accounting for about 22% of its total workforce. However, the company's unusually generous severance package—including six months' salary, free MacBook, and a $10,000 startup subsidy—has drawn considerable attention.
Canva, co-founder and CEO Melanie Perkins, announced these changes on November 4th, describing this reorganization as the most challenging moment in the company's 13-year history. Not all affected employees will lose their jobs; some will be reassigned to new positions or required to relocate.
According to the announcement Canva, the company is launching Canva Collective Fund, offering a subsidy of $10,000 to former employees who are interested in starting their own businesses or undertaking community projects.
Unlike traditional venture capital investment, Canva will not hold any equity or ownership in the projects founded through this program. Departing employees must register their interest by December 14th.
The company also allows departing employees to keep the MacBook issued by the company, stating that this is done with the consideration that some employees may not have their own laptops.
Employees who leave Canva will also receive at least six months' salary, including statutory rights compensation, and this arrangement applies regardless of their location.
In addition, in the countries where Canva currently offers this benefit, employees are also entitled to 12 months of medical coverage, as well as one year of access to the Canva Care Employee Assistance Program. Other benefits include one-on-one career coaching, interview preparation assistance, resume assistance, and one year of LinkedIn Premium membership.
Canva will also eliminate the one-year equity vesting cliff for employees who joined in the past year.
The company will also provide an optional alumni directory to help former employees establish contact with the investors, partners of Canva, and their professional networks, in order to seek new opportunities.
Why does Canva need to lay off employees?
The reason for this reorganization is that Canva is facing a slowdown in growth and increased competition from design tools driven by artificial intelligence. In August, Canva reported lowering its revenue growth forecast for the fiscal year 2026 from 30% to 20%, due to the continuously rising pressures on its business.
Perkins acknowledges that the company has experienced its first slowdown in growth in a decade.
As part of the reorganization, Canva will merge the Product, Growth, and Platform departments into one organization, reduce management levels, and consolidate overlapping responsibilities.
Sydney will also become the main office location for more product teams, and it is expected that most employees who work in a hybrid office setting will come to the office two to three days a week starting from January 2027.
