Canva Restructuring Affects 22% of Workforce With Generous Severance

Canva Announces Major Restructuring and Workforce Changes

Design software company Canva has announced a sweeping restructuring that impacts 1,271 employees, or 22% of its Sydney-based workforce. Co-founder and CEO Melanie Perkins communicated the difficult decision to staff in a note that was also shared publicly online, outlining changes designed to return the company to smaller, empowered teams.

While layoff announcements frequently draw backlash, the Canva exit strategy has instead garnered widespread praise from industry leaders and online commentators for its unique level of transparency and financial support. Observers on LinkedIn and other platforms highlighted the approach as a master class in handling corporate downsizing.

Details of the Generous Severance Package

For employees leaving the company, the minimum exit terms provide significantly more financial cushion than standard technology sector averages. Departing staff are slated to receive at least six months of salary, inclusive of statutory entitlements, regardless of their geographic location. This minimum duration doubles the typical 11.2-week tech industry average reported for the prior year.

Additional perks included in the exit offering consist of:

• Twelve months of continued healthcare coverage in applicable countries.
• Career transition assistance, featuring one-on-one coaching, interview preparation, and a year of LinkedIn Premium.
• Permission to keep company-issued MacBooks.
• Removal of the one-year vesting cliff for recent hires.
• Eligibility to apply for the Canva Collective Fund.

Through the newly established Canva Collective Fund, eligible departing workers can apply for $10,000 grants to launch a business venture, write a book, or pursue another personal project without relinquishing any equity to the firm. Applications remain open through December 14.

Background and Strategic Shift

The workforce reduction unfolds during a delicate operational period for Canva. The company experienced slowing growth over the year for the first time in a decade and adjusted its 2026 revenue growth forecast down from 30% to 20%.

In her staff note, Perkins explained that organizational scaling had created fragmented ownership and overlapping responsibilities. The restructuring aims to simplify corporate layers and refocus teams on core community needs. Canva leadership confirmed that the departed roles are not being replaced by artificial intelligence, noting instead that the structural adjustments are intended to prepare the organization for future product development.

Sources: Fortune, SMH.com.au, Fast Company.