Canva Implements Layoffs, But Offers Generous Severance Packages to Employees

In a time of transition, Canva, a well-known design platform popular among content creators, has announced a significant layoff affecting 1,271 employees, nearly 22% of its workforce.

Generous Severance Package

The company's severance package has drawn attention due to its generosity, as affected workers will receive six months' salary. This move, albeit difficult, reflects Canva's commitment to keeping its employees supported during this challenging time.

CEO's Expression of Regret

Mелани Perkins, the CEO of Canva, characterized this decision as a result of one of the toughest years in the company's history. She expressed deep regret over the pain this decision causes to the employees affected.

Global Scope of Layoffs

Canva employs over 5,700 workers across 37 countries, including a significant number in India. However, the exact impact of these layoffs on specific teams or countries remains uncertain.

A Unique Approach to Layoffs

In a notable departure from standard layoff practices, Canva has allowed its departing employees to keep their company-issued MacBooks. CEO Perkins explained that having a reliable laptop can be crucial for job hunting and resume building, as not everyone owns a personal device.

Support for Job Seekers

In addition to retaining their laptops, the laid-off employees will receive a complimentary one-year subscription to LinkedIn Premium. Canva's team will also assist them in improving their CVs, offering career coaching and interview preparation services.

Health Benefits and Shares

The company guarantees a minimum of six months' salary to each departing employee, and in a departure from standard policy, it has waived the typical one-year employment requirement for receiving stocks. This means even newer employees will qualify for shares.

Healthcare Support

In countries where the company offers health benefits, employees and their families will continue to receive healthcare and Canva Care support for one year following their departure.

Funding for New Ventures

For those seeking to venture into entrepreneurship instead of traditional employment, Canva has established a collective fund. Eligible employees looking to launch a business or community project can apply for a financial assistance of $10,000, with the company not seeking any equity in return. Applications are open until December 14.

Disney's Layoff Concerns

While Canva offers a robust package to its departing employees, the entertainment giant Walt Disney faces its own challenges. Reports from Bloomberg indicate that Disney has requested its managers to implement a 20% reduction in annual spending. This could lead to layoffs across various departments, including ABC, Pixar, ESPN, and its film studios. Recently, major tech companies like Microsoft and Google have also been offering buyouts to thousands of employees, indicating a resurgence in layoffs across the tech industry.