Canva’s 1,271 Job Cuts Come with A Surprising Safety Net: 6 Months’ Pay, MacBooks and More
Canva’s restructuring affects 1,271 employees, but its severance package, six months’ salary, keepable MacBooks, career coaching, healthcare support and $10,000 grants has sparked discussion about more humane layoffs.
Losing a job can mean more than losing a monthly paycheck. It can leave people worrying about rent, healthcare, their next career move and even how they will stay connected to colleagues. That is why Canva’s latest workforce announcement has drawn attention—not only for the number of people affected, but also for the support being offered to those leaving.
The Australian design platform is cutting or changing roles affecting 1,271 employees, around 22% of its workforce, as part of a major restructuring. Yet the company’s severance package has become a talking point in its own right, with at least six months of salary, company-issued MacBooks employees can keep, and a range of career and wellbeing benefits.
The package does not erase the uncertainty of losing a job. But it raises a question that resonates across the technology industry: when companies have to make cuts, how much responsibility do they have to help people land on their feet?
What Is Canva Offering Employees Affected by the Layoffs?
Canva’s support goes beyond a standard exit payment. The company has outlined several benefits intended to give departing employees time, tools and support as they plan their next steps.
- Six months’ salary: Employees receive at least six months of pay, inclusive of statutory entitlements, regardless of location. Canva is also removing the one-year vesting cliff for eligible newer employees.
- Keep their MacBooks: Departing employees can retain their company-issued laptops to support job searches, freelance work or personal projects.
- Career support: Employees receive 12 months of LinkedIn Premium, one-on-one career coaching, résumé assistance and interview preparation.
- Healthcare and wellbeing: Eligible employees receive up to 12 months of continued healthcare coverage and access to Canva Care.
- US$10,000 grants: Through the Canva Collective Fund, departing employees can apply for grants to launch a business or community project, with no equity taken by Canva.
- Alumni talent directory: An opt-in directory will connect former employees with potential opportunities through Canva’s investors, partners and industry network.
Why Is Canva Restructuring?
The benefits arrive alongside a difficult business decision. Canva CEO and co-founder Melanie Perkins described the period as the company’s “hardest year yet,” saying growth had slowed for the first time in a decade. The restructuring is intended to prepare the company for its next phase.
Canva plans to bring product, growth and platform teams closer together, simplify management layers and reduce organisational friction. The changes also involve adjustments to roles and team locations; not everyone affected will necessarily be losing their job, as some employees may be asked to relocate or take on changed responsibilities.
The company is also operating in a creative-software market being reshaped by artificial intelligence. AI tools are making it easier to generate images and other visual content, increasing competitive pressure on platforms that have traditionally helped users create designs, presentations and marketing materials.
While AI is part of the broader industry context, the reported rationale for Canva’s restructuring also includes slower growth and a need to reorganise how the company works.
Why Canva’s Severance Package Is Getting Attention
Layoffs are rarely welcomed, and generous benefits cannot make the loss of a job painless. Still, Canva’s approach has prompted discussion because it addresses several practical needs at once: income, access to a computer, healthcare, job-search assistance and even funding for a new venture.
The package also highlights a difference between announcing a workforce reduction and supporting the people affected by it. Six months of salary may provide financial breathing room; career coaching and LinkedIn Premium may help with the job hunt; and retaining a MacBook can make it easier to begin that search immediately.
For employees, these measures may make the transition less abrupt. For other companies, they offer a reminder that the way a business handles departures can shape how its workforce and the wider industry views its leadership.
A Difficult Decision, With a Focus on What Comes Next
Canva’s restructuring affects a substantial part of its workforce, and the uncertainty for employees remains real. The company’s severance package does not change that central fact.
But its approach stands out because it treats the transition as more than a final payroll calculation. By combining financial support with career guidance, healthcare assistance and resources for new ventures, Canva is attempting to give departing employees a bridge to what comes next.
As layoffs continue to reshape the technology sector, the conversation may increasingly focus not only on how many jobs are cut, but also on how companies support the people who helped build them.