Company values are easy to describe when a business is hiring. The test comes when the company decides someone’s role has no place in its plans.
Canva has put that question in front of the technology industry this week. The company says 1,271 people, or 22% of its workforce, will be affected by a major reorganization. Some employees will leave, while others will face role changes or be asked to relocate.
The announcement also includes a substantial package for those departing: at least six months’ salary, healthcare and employee support where available, career coaching, a year of LinkedIn Premium, the option to keep their MacBooks, and grants of US$10,000 for people who want to start a business or community project.
A thoughtful package still follows a painful decision.
Canva’s announcement is unusually detailed about what departing employees will receive. Six months of salary applies regardless of location, and the company says it will remove the one-year vesting cliff for employees who joined within the past year. Healthcare coverage will continue for twelve months in countries where Canva currently provides it.
Career support includes one-to-one coaching, interview preparation, and help reviewing resumes. The company will also create an opt-in directory to connect departing staff with its investors, partners and wider network.
The Collective Fund deserves a closer look. A US$10,000 grant could help someone test a business idea or fund a local project, and Canva says it will take no equity or ownership in return. People leaving have until 14 December to register their interest. The fund offers a useful opening for some, though an application and a grant are different things.
What the announcement says about leadership
Canva co-founder and chief executive Melanie Perkins says growth slowed for the first time in a decade and calls it the company’s hardest year. The company plans to combine Product, Growth and Platform teams, reduce management layers, and place more product teams in Sydney. It also says changing technology is altering how people create and use products. The memo does not name AI as the reason for the restructure, so it would be a mistake to present that as Canva’s stated explanation.
Technology firms often point to automation when announcing cuts. Canva’s memo attributes the restructure to slower growth and organizational changes, while describing technology as a broader influence on how people create and use products. The explanation given to employees is specific to the company’s plans. People deserve to hear the reason their employer is deciding in plain terms, especially when speculation can travel faster than facts.
Canva’s package gives the industry a concrete example to discuss. When a company has to say goodbye, what should it owe the people who helped it get this far?