Canva’s restructuring affects more than 1,200 people. But its severance package is earning praise

Restructuring is a broad redesign of a company’s workforce, teams, roles, or operations. It usually responds to a major business need, such as changing priorities, slower growth, or pressure to lower costs. It matters because the effects can reach many employees and change how the company works.

Ordinary hiring changes are usually smaller and more routine. A company may fill an open role, add a few specialists, or replace people who leave. Restructuring can instead combine teams, remove roles, or eliminate positions. Canva’s plan affects nearly 1,300 employees, making it much larger than normal hiring activity.

The article presents Canva’s move as “major restructuring.” It does not explain every internal change, but it clearly identifies a large workforce reduction. The company is also drawing attention for its departure terms. That combination shows restructuring can involve both organizational change and a planned response for employees whose jobs disappear.

Canva’s restructuring affects nearly 1,300 employees. The article also says this equals roughly 22% of the company’s staff. That percentage shows the change is not a small adjustment or a few isolated job cuts. It is a substantial workforce reduction.

A share of 22% is a little more than one in five employees. Put simply, if a workplace had 100 people, about 22 would be affected. The figure helps readers understand the scale beyond the raw total. “Nearly” also means the article does not give an exact employee count.

The size of the reduction suggests Canva is making a broad change to its organization. The source does not identify which departments or locations are involved. It does say the company is receiving attention for how it treats departing employees, including six months’ pay and the ability to keep their MacBooks.

A severance package is a set of payments or benefits a company provides to employees whose jobs end. It can help bridge the period between losing one job and finding another. The exact contents differ by employer, so severance may include pay, continued benefits, or other support.

In Canva’s case, the article highlights two benefits. Departing employees are being offered six months’ pay. They are also allowed to keep their company MacBooks. The pay provides direct financial support, while the computer is a useful piece of equipment that may help with future work or job searching.

These terms are notable because the article describes Canva as taking a different approach from typical layoffs. It does not list every part of the package or explain eligibility rules. Still, the stated benefits make Canva’s treatment of affected employees a major part of the restructuring story, not just the number of jobs removed.

Losing a job can create immediate pressure because income stops while everyday expenses continue. Six months of pay could give a departing Canva employee more time to search for work, retrain, or plan carefully instead of accepting the first available role. The actual effect would depend on each person’s expenses and circumstances.

Keeping a company MacBook could remove the need to buy a computer during that transition. It may support applications, interviews, freelance work, or learning, although the article does not say what uses Canva permits. The two benefits therefore address different needs: money supports living costs, while equipment supports practical work.

Canva is receiving attention because these terms differ from the layoff treatment people often expect. They do not erase the loss of employment. They may, however, provide a longer financial cushion and preserve an important tool as affected workers look for what comes next.

Layoffs reduce the number of employees a company pays, so they can lower payroll and related costs. They may also help management redirect spending toward different priorities. But the change can affect more than budgets. It removes people, knowledge, and working capacity from the organization.

For example, if a company eliminates a team, remaining employees may need to absorb its tasks. Projects can be delayed, responsibilities can shift, and some skills may no longer be available internally. Alternatively, the company may focus on fewer projects. These outcomes depend on which roles disappear, information the source does not provide about Canva.

Canva’s reduction is especially large: nearly 1,300 employees, or roughly 22% of staff. That could materially change its remaining workforce and ability to carry out work. The article does not state the savings, affected departments, or operational results, so those effects cannot be measured from the available facts.

The source does not list alternatives to layoffs. Common business options include freezing new hiring, reducing contractors, cutting travel, slowing projects, or lowering executive pay. Companies may also offer voluntary buyouts, unpaid leave, shorter workweeks, or temporary pay reductions, where lawful and workable.

When the problem is a skills mismatch, employers can retrain people or move them into higher-priority teams. They might also combine roles, reduce layers of management, or stop lower-value products. These approaches aim to lower costs or change capabilities while retaining more employees. Each carries trade-offs, including lower morale, slower work, or temporary income reductions.

Canva chose a large workforce reduction affecting nearly 1,300 people, according to the article. Its six months’ pay and MacBook policy concern departing workers, not alternatives that prevent layoffs. Whether another option would have worked depends on Canva’s finances, strategy, and skills needs, none of which the source explains.

The source does not explain Canva’s revenue model. In general, design-technology companies make money by selling access to digital design tools, subscriptions, business plans, or related services. They may serve individual users, teams, or organizations. Revenue pays for technology, staff, marketing, and other operating costs.

If user growth or revenue slows, the company may have less money to support its existing structure. Costs can also rise faster than income. Management may then change priorities, combine teams, reduce projects, or remove roles. If the company needs different technical or commercial skills, restructuring can also shift the workforce toward those needs.

The article gives no financial figures and does not say what specifically prompted Canva’s decision. It does state that Canva is undertaking major restructuring affecting nearly 1,300 employees, or roughly 22% of staff. Therefore, the broader business reasons are possible context, not facts established by this article.