Key takeaways
- Canva's restructuring affects 1,271 employees, approximately 22% of its workforce
- Departing employees are being offered generous severance packages, including six months' salary
- Canva is also offering $10,000 startup grants to help former employees launch businesses
Australian design software company Canva recently announced a major restructuring affecting 1,271 employees, or approximately 22% of its workforce. However, the company's unusually generous severance package, including six months' salary, free MacBooks, and $10,000 startup grants, turned quite a few heads.
Canva co-founder and CEO Melanie Perkins announced the changes on Nov. 4, and described the restructuring as the most difficult moment in the company's 13-year history. Not all affected employees will lose their jobs, as some will be reassigned or asked to relocate.
Announcement from Canva
Canva Offers $10,000 Grants to Laid-Off Employees
Canva is launching the Canva Collective Fund, which will provide $10,000 grants to departing employees interested in starting businesses or community projects.
Unlike traditional startup investments, Canva will not take any equity or ownership in the ventures created through the initiative. Departing employees have until Dec. 14 to register their interest.
The company is also allowing departing workers to keep their company-issued MacBooks, acknowledging as some employees may not have access to personal laptops.
Canva Layoff Severance Package Includes Six Months' Salary
Employees leaving Canva will also receive at least six months' salary, including statutory entitlements, regardless of their location.
In addition to this, the company is offering 12 months of healthcare coverage in countries where it currently provides the benefit, alongside a year of access to its Canva Care employee assistance program. Additional benefits include one-on-one career coaching, interview preparation, resume assistance, and a year of LinkedIn Premium.
(Source: Canva)
Canva will also remove the one-year equity vesting cliff for employees who joined in the past year.
An optional alumni directory will connect departing employees with Canva's investors, partners, and professional network to help them secure new opportunities.
Why Is Canva Laying Off Employees?
The restructuring is happening because Canva faces slowing growth and increasing competition from artificial intelligence-powered design tools. In August, Canva reportedly lowered its 2026 revenue growth forecast from 30% to 20%, due to the mounting pressure on its business.
Perkins acknowledged that the company experienced its first growth slowdown in a decade.
As part of the restructuring, Canva will combine its Product, Growth, and Platform divisions into a single organization, reduce management layers, and consolidate overlapping responsibilities.
Sydney will also become the primary location for more product teams, while most hybrid employees will be expected to work from the office two to three days per week beginning in January of 2027.
