Canva Layoffs: 1,271 Employees Affected as Melanie Perkins Unveils Six-Month Pay and $10,000 Grants

Australian design company Canva announced on Wednesday, 4 November, that restructuring would affect 1,271 employees across its global workforce.

The shake-up, affecting 22% of staff, includes redundancies, role changes and potential relocations, although the number of people losing their jobs remains undisclosed.

The announcement followed a difficult period for the Sydney-based company. Co-founder and chief executive Melanie Perkins said growth had slowed for the first time in a decade. She concluded that smaller changes would not be enough.

In a statement, Canva's Perkins called it 'the hardest moment in our thirteen-year history'. She apologised to affected employees and their families, emphasising that the decisions did not reflect the quality of their work.

Canva Layoffs Bring Six Months' Salary and $10,000 Grant Opportunities

According to Canva, departing employees will receive at least six months' salary, including statutory entitlements, regardless of their location. The company operates across 37 countries, where employment procedures and legal requirements differ.

Employees leaving will also keep their company-issued MacBooks. Perkins said the provision recognised that some staff did not own a personal laptop, which could complicate searching for work.

Support extends beyond equipment and pay. Canva promises one-to-one career coaching, help reviewing CVs, interview preparation and a 12-month LinkedIn Premium subscription. Its recruitment team will assist with those preparations, without guaranteeing employment elsewhere.

A voluntary alumni talent directory is intended to put departing employees in front of the company's partners, investors, and wider industry contacts. Canva says it will share the directory only for those who opt in.

Healthcare coverage will continue for 12 months in countries where Canva currently offers it. Its Canva Care employee assistance programme will also remain available for a year, including to family members.

The company is removing the one-year equity vesting cliff for people who joined in the past year. That provision matters to newer employees whose equity awards would otherwise remain subject to the initial waiting period.

Another option is the Canva Collective Fund, which offers departing employees a chance to apply for $10,000 (€8,900 and £7,400) grants for businesses or community projects. Registration closes on 14 December 2026. Funding is not guaranteed to every applicant, and Canva says it will take no ownership stake in supported projects.

Yet even this detailed severance package leaves one number missing. Canva has not separated the 1,271 affected workers into those who are being dismissed, reassigned, or asked to relocate.

Why Canva Is Restructuring as Growth Slows and Teams Move to Sydney

Perkins said Canva's expansion had led to fragmented responsibilities, too many handovers, and layers of management. The planned response is to combine Product, Growth, and Platform into a single product organisation, while giving smaller teams broader control over their work.

More product employees and selected other roles will be based in Sydney, with some existing staff asked to consider relocation. Canva says it will offer support, but has not given numbers for those facing relocation requests or described the consequences of declining.

From January 2027, most employees on hybrid arrangements will be expected in offices around two to three days per week. Perkins said the exact requirements would depend on individual work areas.

AI is part of the technological backdrop, but Canva did not name it as the specific cause of redundancies. Perkins instead cited slowing growth, organisational complexity and technology changing what people expect of creative software.

The uncertainty has already surfaced among employees. In a public LinkedIn post, Canva product manager Artemi Ollin compared the announcement with layoffs he experienced after joining Google. He said he remained employed, but many colleagues did not, and urged continuing staff to 'be kind' and offer referrals.

Those affected are being invited to individual discussions with senior leaders, the timing of which depends on local employment rules. Departing workers will retain access to Gmail and Slack until the end of the week, allowing them to contact colleagues directly.

Canva has scheduled a company-wide meeting for 10 November, followed by meetings within individual organisations from 11 November. Team leaders are expected to provide details of changes in their areas ahead of those sessions.