Canva, the Australian design platform, has announced a significant reduction in its global workforce, cutting 22 per cent of its employees. The decision affects 1,271 staff members as part of a major restructuring effort. Co-founder and CEO Melanie Perkins described this move as the “most difficult moment” in the company’s 13-year history. Currently, Canva employs over 5,700 individuals across 37 countries, including India, but has not specified which teams or locations will experience the most impact.

Severance Package for Affected Employees

In an effort to ease the transition for those laid off, Canva has introduced a comprehensive severance package. Each affected employee will receive at least six months’ salary, which includes statutory entitlements, irrespective of their location. Additionally, departing employees will be allowed to keep their company-issued MacBooks, a move aimed at ensuring they have the necessary tools for job searches.

The severance package also includes a 12-month subscription to LinkedIn Premium, providing employees with resources to aid in their job searches and networking efforts. Furthermore, Canva will offer one-on-one career coaching, interview preparation, and assistance with resume building to help employees navigate their next steps.

Healthcare support is another key component of the package, with 12 months of continued coverage available in regions where Canva provides this benefit. The company’s employee assistance programme, Canva Care, will also remain accessible to departing employees and their families for a full year.

Financial Support and Future Opportunities

Canva is additionally offering financial support for employees interested in starting their own ventures. Through the Canva Collective Fund, departing employees can apply for grants of $10,000 to launch a business or engage in community projects. The company has clarified that it will not seek ownership or equity in any businesses or projects funded by these grants. Employees have until December 14 to submit their applications.

To further assist those affected, Canva is establishing an opt-in alumni talent directory. This directory will be shared with investors, partners, and the broader industry network to help former employees discover new opportunities. Affected employees will retain access to company communication tools like Slack and Gmail until the end of the week, allowing them to inform colleagues and manage their departure effectively.

The layoffs and accompanying severance benefits occur in a challenging context for Canva, as the company has faced slowed growth for the first time in a decade. Perkins indicated that various alternatives were explored before concluding that a restructuring was necessary. The company aims to unify its product, growth, and platform teams into a single organisation while simplifying management layers and consolidating overlapping roles.

Impact of AI and Market Conditions

The restructuring comes amid increasing pressures from advancements in artificial intelligence, which are transforming the creative software landscape. AI tools are facilitating the generation of images and presentations, prompting traditional design platforms to reassess their competitive strategies. Canva has been investing significantly in AI features and reorganising its platform to adapt to these changes.

Investor concerns regarding Canva’s valuation have also emerged, with its largest venture backer, Blackbird, reportedly reducing the company’s valuation by 17 per cent to $34.9 billion in August 2026. The job cuts reflect a broader challenge within the technology sector as companies navigate the dual pressures of slowing growth and the evolving demands brought about by AI advancements.

In summary, Canva’s layoffs and extensive severance package illustrate the company’s response to a rapidly changing market environment, as it seeks to streamline operations and adapt to new industry realities.

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