Canva to lay off 22 per cent of workforce amid growth slowdown

Australian graphic designing platform Canva Group has announced that it will reduce its total workforce by 22 per cent. As the company experienced a slowdown in growth for the first time in a decade, a decision has been taken to remove 1,271 employees from their jobs as part of a restructuring process. According to a report by TV9 Gujarati, more than 5,700 people work at Canva across 37 countries, including employees from India. However, the company has not provided information on which country or team will be most affected by these layoffs.

Co-founder and CEO Melanie Perkins stated that these changes will reshape Canva's organisational structure, team locations, and staffing requirements. Describing the decision as extremely difficult, she apologised to the affected employees. Perkins clarified that the layoffs do not reflect a lack of competence or the diminished importance of the employees' work.

According to a report by The Hindu, Canva is merging its product, growth, and platform teams into a single product organisation to reduce handovers and give teams more ownership. Additionally, management layers will be streamlined and roles consolidated to improve decision-making processes and accountability. The company plans to make Sydney the primary base for more product teams, and some employees will be asked to relocate there. From January, most hybrid employees will be required to come to the office two to three days a week.

The company has announced a comprehensive severance package for the employees facing layoffs. According to TV9 Gujarati, affected employees will receive at least 6 months' salary and necessary legal payments. They will be allowed to keep their company MacBook and will receive a LinkedIn Premium subscription for one year. Facilities such as career coaching, interview preparation, and resume improvement for finding new jobs will be provided by the company's talent acquisition team.

For employees who joined the company within the last year, the one-year vesting condition will be waived so they can become eligible for their equity. In countries with healthcare facilities, employees will continue to receive benefits for 12 months, and employees and their families can avail of the 'Canva Care' program for one year. Furthermore, the company will create an 'Alumni Talent Directory' to be shared with investors and the industry. Those affected will have access to Slack and Gmail until the end of this week.

The company has also established the 'Canva Collective Fund'. According to reports by The Hindu and TV9 Gujarati, employees starting their own business or working on local projects may receive a grant of up to 10,000 dollars (approximately ₹8.9 lakh). The company will not take any equity in the business in exchange for this grant. Interested employees must submit their details by December 14.

Due to the rapid development of IT and AI in the technology sector, other companies have also reduced their employee counts. In March, enterprise software company Atlassian cut 1,600 jobs. In February, software company WiseTech Global laid off nearly one-third of its global workforce.