Design technology company Canva is cutting nearly 1,300 jobs, affecting about 22% of its workforce, as part of a major restructuring.
However, the Sydney-based company has drawn widespread attention for offering generous benefits to employees losing their jobs.
CEO Melanie Perkins announced the decision on November 3 in a LinkedIn post. She said Canva would give every affected employee six months’ salary, regardless of their location.
It will continue healthcare coverage for former employees and provide resume assistance, career coaching, and interview preparation. They will also receive one year of LinkedIn Premium and get to keep their company-issued MacBooks.
Canva will also remove the one-year vesting requirement for recently hired employees, allowing them to retain company shares even if they joined within the past 12 months.
Additionally, Canva has established a fund that will provide $10,000 grants to former employees who want to start their own businesses or launch projects.
The move comes as Canva expands its AI-powered products and considers a potential stock market listing. Its severance package has earned praise on social media, with many calling it an example of how companies should treat workers during layoffs.
Canva faces growing competition from AI startups and chatbots such as ChatGPT and Gemini, which offer image-generation tools that make creating posters and presentations easier.