23 Daily — According to entrepreneur.com, the well-known graphic design platform Canva announced a major workforce adjustment after experiencing its toughest year yet. The restructuring affects about 1,271 employees, approximately 22% of its total workforce. Canva also introduced a highly generous severance package offering multiple support measures for laid-off staff.
Canva Implements Large-Scale Layoffs with Generous Severance
Melanie Perkins, co-founder and CEO of Canva, noted in an internal memo that the company experienced a growth slowdown for the first time in a decade during the past year. After exploring various alternatives, she concluded that minor changes would not suffice, and a fundamental re-founding of Canva was necessary to return to small, empowered teams.
The layoffs or role changes affect 1,271 employees, roughly 22% of the workforce. Affected employees will receive at least six months' pay regardless of tenure, and all will retain their equity regardless of how long they have been with the company. Additionally, in countries where offered, Canva provides 12 months of continued healthcare coverage plus 12 months access to its employee assistance program, Canva Care, covering employees and their families.
Comprehensive Career Support for Departing Employees
Canva supports departing employees with individual coaching, interview preparation, and one year of LinkedIn Premium membership. The company has assigned a significant portion of its recruiting team to help review resumes and conduct mock interviews. Employees can also opt into an alumni talent directory shared with investors, partners, and the wider industry network to aid in job placement.
Recognizing that not all employees may have personal laptops, Canva allows departing staff to keep their company-issued MacBooks. Slack and Gmail access remain open until the end of the week, giving employees time to process the news and say farewells on their terms.
Entrepreneurship Fund Boosts Employee Autonomy
To encourage entrepreneurial aspirations, Canva launched the Canva Collective Fund, offering
Overall, Canva's approach not only secures financial and health benefits for departing staff but also invests resources in career transition and entrepreneurship support. Talent transition expert Greg Simpson notes this reflects a broader shift toward enhanced career support for laid-off workers.
Editor's take: Canva's layoff approach sets a new standard for workforce care
While the scale of Canva's layoffs is significant, its generous severance and comprehensive career support help employees transition smoothly. Entrepreneurs can observe that even amid operational difficulties, showing respect and support for employees is feasible and beneficial to brand reputation. Such strategies may become a new trend for large startups restructuring their workforce.
To assess the effectiveness of Canva's departure support, entrepreneurs should monitor brand reputation post-layoff, rehire rates of former employees, and the uptake and outcomes of company entrepreneurship programs. These metrics reflect a company's ability to maintain team stability and uphold human-centric values during restructuring.