Canva cuts 1,200 jobs in corporate restructuring
Design software firm Canva is laying off approximately 22% of its global workforce. The company is offering a severance package that includes financial support and extended career transition services.
Canva has initiated a major restructuring that impacts 1,200 employees, representing nearly one-quarter of the company’s staff. CEO Melanie Perkins described the decision as the most difficult in the firm’s history, citing the need to adjust the organizational structure to prepare for future operations.
In a departure from industry standards, the company’s severance package includes six months of salary, extended healthcare coverage, and the ability for departing staff to retain their company-issued laptops. Furthermore, Canva has removed the one-year vesting cliff for equity, ensuring that newer employees retain their shareholdings. A dedicated fund has also been established to provide $10,000 grants to former staff pursuing entrepreneurial ventures.
Industry observers suggest the move may be linked to preparations for a potential IPO following years of aggressive spending on artificial intelligence tools. While large-scale layoffs are common in the technology sector, the transparency and support provided by Canva have drawn scrutiny and commentary regarding corporate ethics in downsizing.
The company has also launched an alumni directory and active outreach to other industry leaders to facilitate re-employment for affected workers. No specific financial or operational triggers for the layoffs were provided by the leadership team.