Canva has unveiled an unusually generous exit package for workers leaving the design software company as part of a major restructuring effort that will affect more than one-fifth of its workforce. The Australian-founded company announced on Tuesday, November 3 that 1,271 employees, equivalent to 22 percent of Canva’s workforce, will be affected by the changes. Some employees will lose their jobs, while others might have their roles changed or be asked to relocate.
The company hasn’t yet disclosed exactly how many people will ultimately leave. Newsweek has contacted Canva for comment and is awaiting a response. The changes come during what co-founder and CEO Melanie Perkins described as Canva's "hardest year yet," with the company's growth slowing for the first time in a decade.
But, alongside the scale of the restructuring, attention has also turned to the support being offered to those leaving. Every departing employee will receive at least six months' salary, including their statutory rights, regardless of where they’re based. Employees who have been at Canva for less than a year won’t lose any shares or equity simply because they were laid off before their first anniversary.
Workers will receive 12 months of continued healthcare coverage and a year of access to Canva Care, its Employee Assistance Program (EAP), which also covers family members. Departing workers will receive one-on-one career coaching, interview preparation, and a year of LinkedIn Premium. The company is assigning part of its Talent Acquisition team to help affected workers review resumes and practice for interviews, while an opt-in alumni directory will be shared with investors, partners, and industry contacts.
Employees leaving the company can also keep their Canva-issued MacBooks. Perhaps the most unusual element is the new Canva Collective Fund. Departing employees can apply for $10,000 grants if they want to start a business or pursue a project benefiting their local community.
Canva said it will take no ownership or equity in anything created through the initiative. The package has attracted mainly positive attention. Jasveer Singh, the co-founder and CEO of KnotDating, called it "a master-class in how to handle layoffs." He said the Canva CEO's announcement was "thoughtful, honest and generous." Mark Di Stefano, Rear Window editor at The Australian Financial Review, called the package "exceedingly generous." Despite the praise, some users, such as socialistMAD, have been skeptical: "There will be fine print if your business starts to gross a certain amount they will come back for something…All of that really gives you no security." The user alluded to the fact that 6 months' worth of salary is unlikely to be enough in the current job climate.
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