Canva Fires 1,271 Employees, But Offers MacBook, LinkedIn Premium In Severance

Canva layoffs: Australian design platform, Canva, is cutting 22 per cent of its global workforce as it prepares for a major restructuring. As per reports, 1,271 employees have been affected by the layoffs.

Canva co-founder and CEO Melanie Perkins announced the job cuts in an internal memo, describing the decision as the "most difficult moment" in the company's 13-year history. The company employs more than 5,700 people across 37 countries, including India. It has not disclosed which teams or locations will be hit hardest.

Canva Layoffs: What Will Employees Get?

Canva is trying to soften the blow for 1,271 employees with an unusually extensive severance package. Laidoff employees get to keep their company MacBooks and receive a year of LinkedIn Premium, among other benefits. The package also includes career coaching, healthcare support and even financial assistance for employees looking to start their own businesses.

Here Is What Employees Affected By The Layoffs Can Expect:

1. Six months' salary: Every affected employee will receive at least six months' salary, inclusive of statutory entitlements, regardless of their location.
2. Free MacBooks: Employees will be allowed to keep their company-issued MacBooks. Perkins said the decision was meant to ensure departing employees would still have a laptop, especially those without a personal device.
3. One year of LinkedIn Premium: Canva will provide a 12-month LinkedIn Premium subscription to help employees with their job searches and networking.
4. Career coaching: Employees will receive one-to-one career coaching and interview preparation. Canva's Talent Acquisition team will also help with resumes and interview practice.
5. Healthcare support: Employees will receive 12 months of continued healthcare coverage in countries where Canva offers the benefit.
6. Employee assistance: Canva Care, the company's employee assistance programme, will remain available to departing employees and their families for 12 months.

Canva Offers Financial Support To Laid-Off Employees

Canva is also offering financial support to employees who want to start something of their own after leaving the company. Under its Canva Collective Fund, departing employees can apply for grants of $10,000 to launch a business or undertake a project in their local community.

The company has clarified that it will not seek ownership or equity in businesses or projects created using these grants. Employees interested in applying have until December 14 to register.

Canva is also creating an opt-in alumni talent directory. The directory will be shared with investors, partners and its wider industry network to help departing employees find new opportunities.

Employees will retain access to Slack and Gmail until the end of the week. This will give them time to inform their colleagues and decide how they want to communicate their departure.

Why Is Canva Laying Off 1,271 Employees?

The generous severance package comes against the backdrop of a difficult year for the company. Canva's growth slowed for the first time in a decade. Perkins said the company had explored several alternatives before deciding that smaller changes would not be enough.

The restructuring will bring its product, growth and platform teams together under a single product organisation. Canva also plans to simplify management layers and consolidate overlapping responsibilities. The company wants to return to smaller teams with greater ownership and decision-making powers.

Sydney will become the primary base for more of Canva's product teams. Some employees may be asked to relocate, while others could see changes in their roles.

From January, most hybrid employees will also be expected to work from the office two to three days a week. The changes mark a major shift for Canva, which had previously embraced flexible and remote working arrangements.

Canva Layoffs: AI Pressure And Slowing Growth

The restructuring comes as artificial intelligence changes the creative software industry. AI tools are making it easier to generate images, presentations and other visual content. This is also raising questions about how traditional design platforms will compete and grow.

Canva has been investing heavily in AI features and reorganising its platform around them. The company has also faced investor concerns about its valuation. Its largest venture backer, Blackbird, reportedly cut Canva's valuation by 17 per cent to $34.9 billion in August 2026.

The job cuts reflect a broader challenge facing technology companies: how to reorganise their businesses as growth slows and AI reshapes products, workflows and workforce requirements.