Canva lays off 1,271 employees, offers six months' salary, other benefits

Canva has laid off 1271 employees, accounting for 22 per cent of its workforce. The decision, according to CEO Melanie Perkins, was taken after the company faced its “hardest year” in history. However, the company is yet to specify which regions will be affected by the layoffs. It employs over 5,700 people across 37 countries, including India.

“I’m deeply sorry for the pain and disruption this will cause for everyone affected,” stated Perkins in an internal memo as quoted by India Today. The decision was announced on Tuesday (November 3).

Affected employees to receive laptops, career support

However, apart from providing a severance package, the company is providing extra benefits to affected employees. According to the report, all 1,271 affected employees will be allowed to keep their MacBooks, as the company thinks that not all of them have a personal laptop.

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CEO Melanie Perkins said the laptops would help departing staff continue using a computer after leaving the company. “We know not everyone has a personal laptop,” she said.

Affected employees will also receive a one-year LinkedIn Premium subscription, individual career coaching and interview preparation. Canva said members of its talent acquisition team would help affected employees review their resumes and practice for interviews to find their next opportunity.

Severance pay, equity and healthcare benefits

Perkins said all affected employees, irrespective of their location, would receive “at least six months' salary, inclusive of statutory entitlements.”

The company will waive its one-year vesting cliff for employees who joined within the past year. Those leaving before completing 12 months will still qualify for company equity.

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Canva will also continue healthcare coverage for 12 months in countries where it offers the benefit. Departing employees and their families will retain access to Canva Care for the same period.

Alumni network and grants for departing staff

Canva is also creating an opt-in alumni directory to connect former employees with investors, partners and industry contacts. Its Canva Collective Fund will offer $10,000 grants to those planning to start a business or take up a community project.

The company will not claim ownership or equity in work funded through these grants. Employees have until December 14 to register their interest.