Canva's severance package for employees leaving in a major restructuring is drawing widespread praise on social media. The Australian design platform said the reorganisation affects 1,271 people, or 22 percent of its workforce. Departing staff will receive at least six months' salary, extended healthcare cover, career support and their company-issued MacBooks. They can also apply for a $10,000 grant to start a business.
What the package includes
According to International Business Times, the pay covers statutory entitlements and applies wherever the employee is based. Healthcare cover runs up to 12 months, but only in countries where Canva already offers the benefit. Departing employees and their families also get a year of access to Canva Care, the company's employee assistance programme.
Career and equity support
Career help includes one-to-one coaching, CV reviews, interview preparation and a year of LinkedIn Premium. Canva's talent acquisition team will help staff find new roles. Employees who joined in the past year will not lose their equity, as the one-year vesting cliff has been removed.
Canva Collective Fund
The new Canva Collective Fund offers $10,000 grants to departing employees who want to start a business or community project. Canva will take no equity or ownership in the ventures. Interested employees have until December 14 to register.
Why Canva is cutting jobs
CEO Melanie Perkins announced the changes in a note on November 3, calling it the hardest moment in the company's thirteen-year history. She said 2026 has been Canva's hardest year yet, with growth slowing for the first time in a decade. In August, the company lowered its 2026 revenue growth forecast from 30% to 20%.
Canva will merge its Product, Growth and Platform teams into a single Product organisation, with fewer organisational layers and smaller teams. More product teams will be based in Sydney, and most hybrid staff will be expected in the office two to three days a week from January 2027.
No AI replacement, says Canva
Perkins did not name artificial intelligence in her note, though she referred to technology changing how people create and use digital products. A Canva spokesperson later told Australian Associated Press that the changes are about positioning the company to build such products, not about using AI to replace those leaving.
Online reaction and open questions
KnotDating co-founder and CEO Jasveer Singh called the announcement "a master-class in how to handle layoffs," Newsweek reported. Some online commenters, however, noted that six months' pay may not stretch far in a tough job market.
Several affected employees have shared their reactions on LinkedIn. Group Content Design Lead Dunja Popovs said she was "sad and devastated" on learning she was among those laid off. Communications specialist Chris Hew, who joined in 2021, said he was "gutted".
Canva has not said how many of the 1,271 affected employees will lose their jobs, as some will be reassigned or asked to relocate. Individual meetings with senior leaders are planned, and a company-wide meeting is scheduled for November 10.
