Canva announces major layoffs and restructuring, 1,271 employees to be impacted
Follow UsCanva has announced a company-wide restructuring plan which will affect 1,271 employees or around 22 per cent of its workforce.
The changes will affect some employees' roles and require others to relocate to centralised offices.
As part of changes, some employees will also lose their job.
Canva has announced major layoffs as part of a company-wide restructuring plan which will affect 1,271 employees or around 22 per cent of its workforce. The decision was announced by co-founder and CEO Melanie Perkins in a note to employees. The changes will also affect some employees’ roles and require others to relocate to centralised offices. Perkins said the move was necessary to prepare Canva for its next phase of growth. She described it as the “hardest moment” in the company’s 13-year history and apologised to employees.
SurveyWhy is Canva laying off employees?
Explaining the reason behind the decision, Perkins said Canva’s growth has slowed for the first time in a decade. She added that the company needs to change how it works to keep up with the fast-changing technology industry.
According to Perkins, small changes would not be enough to prepare the company for the future. Canva wants to return to smaller teams with more freedom to make decisions and take responsibility for their work.
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“I’ve come to the difficult conclusion that small changes won’t be enough. To set ourselves up for the next decade, we need to refound Canva, getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership and focus on what matters most for our community,” Perkins wrote.
The company is planning three major changes. First, it will bring its Product, Growth and Platform teams under one Product organisation. This is expected to make it easier for teams to work together. Second, Canva will reduce specialised roles and management layers. It wants employees to take greater responsibility for projects. Third, the company plans to bring more teams together in offices. Sydney will become the main base for more product teams.
“We know relocating is a big decision for those being asked to consider it, and we’re committed to making the process as smooth as possible with comprehensive support,” Perkins wrote.
From January, most employees working in a hybrid setup will be expected to spend around two to three days in the office each week.
What support will affected employees receive?
Canva has announced several benefits for employees who are leaving the company. Everyone affected will receive at least six months of salary, including statutory payments. Employees who joined within the last year will also have their one-year share vesting requirement removed.
The company will continue healthcare coverage for 12 months in countries where it is currently provided. Affected employees will also receive 12 months of Canva Care support, including access for their family members.
Canva will provide career guidance, interview preparation and one year of LinkedIn Premium. Employees will also be allowed to keep their company-issued MacBooks.
Furthermore, Canva is launching the Canva Collective Fund. Under this initiative, departing employees can apply for $10,000 to start a business or support a community project.
