Australian design platform Canva is preparing for major layoffs. Company co-founder and CEO Melanie Perkins sent an email to employees on November 4 informing them that 1,271 employees were going to be laid off. The company is going to reduce 22 percent of its staff.
According to Melanie Perkins, some employees will have their roles changed or will be asked to move to a central hub. Some employees will also have to leave the company. This is the first major layoff in Canva's 13-year history. This email of the CEO has also been later published on the company's website. Canva doesn't have an office in India but is used by millions of people.
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Why is Canva facing layoffs?
Melanie Perkins said in an email that the company's growth has slowed for the first time in a decade and it has been its toughest year ever. He described this as the most difficult period in the company's 13-year history.
In August, the company had reduced its revenue growth estimate from 30 percent to 20 percent. Melanie Perkins said that small changes were not enough and the company needed to return to its original structure of small teams, where the teams themselves made decisions and took responsibility for the work.
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Which changes will the company implement?
The company has announced three major changes. First, a product org will be created by combining the product, growth and platform teams, so that there is less transfer of work and more authority is given to the teams. Second, the company will combine less specialized roles and assign greater responsibilities. Similar responsibilities will be brought together on one platform, with emphasis on reducing separate management. Its purpose is to give teams responsibility for a project from beginning to end. Third, Sydney will be the main hub for several product teams and some other roles. From January, most hybrid employees will have to work from office two to three days a week, depending on the transfer and their post. The company will provide assistance to those employees who are asked to relocate.
What will those who are kicked out by Canva get?
The employees who are leaving will also receive a support package. At least 6 months salary will be given in this. Will be allowed to have 12 months healthcare, MacBook. Career coaching, LinkedIn Premium, and Westing Cliff are available for recent joiners. Employees leaving under the Canva Collective Fund will also be given a grant of up to $10,000 to start their own startup or project, in which the company will not take any equity.