Canva just laid off 1,200 people. But its severance package is earning praise
Design tech company Canva is doing some major restructuring : The move will impact about 1,200 employees, or roughly 22% of its staff. But the company’s also getting attention for how it’s treating the newly terminated employees. On Tuesday, CEO Melanie Perkins announced the news in a post on LinkedIn. She also shared a letter that laid out a generous severance package that’s being fawned over on…
Design technology firm Canva is undergoing significant restructuring, impacting around 1,200 employees, approximately 22% of its workforce. However, the company is receiving commendation for its approach to handling the terminations. CEO Melanie Perkins announced the news on LinkedIn, accompanied by a letter detailing a generous severance package which has garnered praise on social media.
Under the new policy, all terminated staff will receive six months of salary, irrespective of their location. Moreover, the company has waived the one-year vesting period for employees who joined within the past year, enabling them to receive shares in the company. Terminated employees will continue receiving healthcare benefits, as well as dedicated career support and resources to assist with job searching, resume building, coaching, and interview preparation, along with one year of LinkedIn Premium access.
Canva has also set up a fund to offer $10,000 grants to those interested in launching their own businesses or projects. The terminated staff are permitted to keep their MacBook laptops, a gesture that has been well-received. CEO Perkins shared in her LinkedIn post that the company is restructuring to better organize its operations, which sadly results in letting go of many talented individuals who have contributed to Canva's growth.
She also established an opt-in alumni directory for former employees to explore potential job opportunities. The CEO didn't specify the reason behind the layoffs but noted that it is the most challenging decision the company has made in its history, as they are preparing for a potential IPO following years of investments in AI-powered products.
Despite the company's significant changes, Perkins emphasized that Canva values its employees and is committed to helping them transition into their next chapters. The company's response to the layoffs has been met with widespread appreciation, with many commenting on the empathetic and transparent approach taken by Canva during this difficult time.
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