Canva Lays Off Thousands Amid Restructuring BUT Its Generous Severance Package Wins Praise

Canva Layoffs: Design giant Canva is laying off 22 percent of its workforce in a massive restructuring move. But the company's generous severance package is winning praise on social media.

Slowing growth... Impact of AI competition

Major changes are happening at the world-famous design platform Canva. The company has started massive layoffs during the toughest period in its history. Co-founder and CEO Melanie Perkins officially announced this. She said they are firing 22 percent of employees, around 1,271 people, as part of company restructuring. This decision by a company that worked hard to grow has become a big topic in tech circles.

Canva grew very fast over the last decade, but its revenue growth slowed down in the last two years. The growth rate was 45 percent in 2024, but it dropped to 38 percent by 2025. In August this year, they had to cut revenue forecasts to 20 percent. Rising costs hit profits while serving over 20 million free users. On top of this, new competition in Artificial Intelligence has also strongly affected Canva.

Package getting praise on social media

Usually, companies face heavy criticism when they fire employees. But Canva is getting praise from everyone for the farewell package given to its staff. They are giving people who lost jobs at least six months' salary, one year of health insurance, and LinkedIn Premium subscription, beyond legal rules. They also announced that employees can keep the MacBook laptops they were using.

Brand new Canva Collective Fund

Canva came forward to help those who lost their jobs to start their own business or new projects. Through the Canva Collective Fund, they announced a $10,000 grant for eligible private projects. The company will not take any equity in this. They are also providing special career support and resume building help so employees can find new jobs.

Future plans...

The CEO said they had to make these changes because the company structure became very complex. They will combine product, growth, and platform teams to strengthen operations from Sydney. Canva management made it clear their goal is to use AI technology and bring better products to market faster in the future. They revealed they took this tough decision to guide the company on the right path while facing current challenges.