Canva Cuts 22% of Staff, Offers 6-Month Severance

What Happened

Canva, the Australian design software company, announced it is cutting roughly 22 per cent of its workforce — about 1,271 employees — according to The Indian Express. Co-founder and CEO Melanie Perkins said in a memo to staff that the company's growth has slowed for the first time in a decade, making structural change necessary. The report notes that not all affected employees are losing their jobs outright; some changes involve role transitions and relocations.

The Numbers Behind the Decision

The Indian Express reports that rising costs from developing in-house AI tools forced Canva to lower its revenue growth forecast from 30 per cent to 20 per cent. That pressure also weighed on investor confidence: early investors reportedly cut Canva's valuation to around 35 billion US dollars earlier this year. The company is also reorganising internally, merging its product, growth, and platform teams to reduce what it describes as communication friction, and is moving away from a fully remote model by asking staff to work from an office on some days.

A Severance Package That Stood Out

What drew widespread attention on social media, the report says, was the support Canva offered departing employees. Key elements of the package include:

• At least six months' salary as severance, including statutory entitlements, regardless of location
• Permission to keep company-issued MacBooks
• Up to 12 months of continued healthcare coverage where Canva currently provides it
• Continued access to Canva Care, the company's employee assistance programme, for one year for staff and their families
• A one-year LinkedIn Premium subscription and one-on-one career coaching
• An opt-in alumni directory to connect former employees with potential employers
• A waiver of the standard one-year vesting cliff (the period an employee must wait before stock compensation becomes theirs) for those who joined within the past year
• Grants of 10,000 US dollars from the Canva Collective Fund for employees who want to start a business or community project, with no equity taken in return

Software engineer Anubhav Sethi wrote on LinkedIn that Canva "set a benchmark," while AI engineering professional Pratham Kohli called the approach "an example of how layoffs can be handled with greater empathy," according to the report.

Why It Matters for Job Seekers

• If you work in tech and are concerned about job security, consider reviewing your employment contract's severance terms now, before any announcement, so you know what to expect.
• If you are currently job hunting after a layoff, look for companies that offer alumni networks or career coaching as part of their offboarding — these resources can meaningfully shorten a job search.
• If you hold unvested stock options at your current employer, understand your vesting schedule and cliff terms, as these can significantly affect the financial impact of a layoff.
• If you are a hiring manager or founder, the public reaction to Canva's package shows that how a company handles departures affects its reputation with future candidates.

Audience note: This story is relevant to tech workers worldwide, particularly those in roles at growth-stage companies navigating AI-driven cost pressures.