Canva has announced a major workforce restructuring that will affect 1,271 employees, or 22% of its global workforce. The changes will include job cuts, role changes, and employee relocations across 37 countries.
However, what has caught attention is the support package offered to departing employees. It includes at least six months’ salary, continued healthcare coverage, company-issued MacBooks that employees can keep, and career assistance.
Why Is Canva Restructuring Its Workforce?
In her official announcement, Melanie Perkins explained that Canva’s growth has slowed for the first time in a decade, making significant organisational changes necessary.
The restructuring affects employees across 37 countries. However, not all 1,271 employees will necessarily lose their jobs. Some will experience role changes or relocation, while others will leave the company.
Canva plans to bring its Product, Growth and Platform teams together under one organisation, reduce management layers and combine overlapping responsibilities.
The company is also changing its workplace arrangements. Sydney will become the primary base for more product teams, while most hybrid employees are expected to work from offices two to three days a week from January 2027.
What Is Included in Canva’s Severance Package?
Canva has announced several financial, professional, and wellbeing benefits for employees leaving the company.
Here is what the official announcement confirms:
- Six months’ salary: Every departing employee will receive at least six months’ salary, including statutory entitlements, regardless of location.
- MacBook ownership: Employees leaving Canva can keep their company-issued MacBooks.
- Healthcare coverage: Eligible employees will receive 12 months of continued healthcare coverage in countries where Canva currently provides it.
- LinkedIn Premium: Departing employees will receive a 12-month subscription to support job searches and professional networking.
- Career assistance: Canva is providing individual coaching, CV reviews and interview preparation through its Talent Acquisition team.
- Employee wellbeing: Canva Care, its employee assistance programme, will remain available to departing employees and their families for 12 months.
The company is also removing the one-year vesting cliff for employees who joined within the past year.
Canva Offers $10,000 Grants to Employees Starting Businesses
One of the most notable parts of the Canva severance package is the Canva Collective Fund.
Through this initiative, departing employees can register their interest in receiving a US$10,000 grant to start a business or develop a meaningful community project.
Canva has confirmed that it will not take ownership or equity in the businesses or projects supported through the fund.
Employees leaving as part of the restructuring have until December 14, 2026, to register their interest. However, the grant is an opportunity to apply, not a guaranteed payment to every departing employee.
Is AI Competition Behind Canva’s Job Cuts?
AI competition is not the sole reason behind Canva layoffs; the company is restructuring as artificial intelligence continues to transform the graphic design industry.
AI-powered platforms can now generate images, presentations, marketing creatives, and other visual content, increasing competition for established design tools.
Canva itself has been expanding its AI capabilities. However, its official announcement identifies slowing growth and organisational inefficiencies as key reasons for the restructuring rather than naming AI competition as the sole cause.
The company wants to reduce internal coordination, simplify responsibilities and give smaller teams greater ownership of product development.
What Happens Next at Canva?
Canva plans to complete individual discussions with affected employees while following employment requirements across its 37 countries.
The company will also hold a company-wide meeting on November 10, 2026, to explain the changes and address employee questions.
The restructuring represents a significant shift in how Canva plans to operate as it enters its next phase of growth.
While its employee exit package offers financial and professional support, the bigger question is whether a leaner organisational structure will help Canva compete more effectively in an increasingly AI-driven design industry.
