Canva announces 1,271 layoffs as part of major overhaul, outlines support package for affected workers

Canva to lay off 1,271 employees. Photo: Unsplash

IBNS-CMEDIA: Australian design platform Canva has announced plans to cut 22 per cent of its global workforce as part of a major restructuring exercise, according to media reports.

The layoffs are expected to affect approximately 1,271 employees.

Canva Chief Executive Officer Melanie Perkins described the restructuring as an extremely difficult decision in an email to staff on Wednesday, calling it “without doubt the hardest moment in our thirteen-year history”, The Guardian reported.

“For some people, this will mean changes to their roles or being asked to relocate to centralised hubs,” she said.

“Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today,” Perkins added.

She acknowledged that relocating could be a major decision for employees and said the company was committed to providing comprehensive support to make the process as smooth as possible.

What will affected employees receive?

According to media reports, employees losing their jobs will receive at least six months’ salary and retain healthcare coverage for an additional 12 months in countries where the benefit is available.

They will also be allowed to keep their company laptops.

Additionally, departing employees will have the option of applying for grants of US$10,000 (approximately A$14,000) to help them launch their own businesses, The Guardian reported.

Microsoft also offers voluntary buyouts amid AI push

Canva’s announcement comes nearly a week after technology giant Microsoft offered voluntary buyouts to around 60,000 employees as part of its workforce restructuring amid an increased focus on artificial intelligence (AI).

Approximately 60,000 employees are eligible for the programme, a person familiar with the matter told CNBC, requesting anonymity while discussing an internal development.

The move reportedly affects around 27 per cent of Microsoft’s total workforce of approximately 223,000 employees.

One in four jobs worldwide exposed to Generative AI

Meanwhile, a joint study by the International Labour Organization (ILO), the United Nations’ labour agency, and Poland’s National Research Institute has found that nearly one in four jobs worldwide is potentially exposed to Generative Artificial Intelligence (GenAI).

However, the study suggests that changes in job roles and responsibilities are more likely than widespread job losses as AI technologies become increasingly integrated into workplaces.

The research highlights significant gender disparities in the potential impact of AI-driven automation.

In high-income countries, jobs classified as being at the highest risk of AI-driven task automation account for 9.6 per cent of female employment, nearly three times the proportion among men.

Globally, 4.7 per cent of women’s jobs fall into the highest-risk category, compared with 2.4 per cent of men’s jobs.

The disparity is largely attributed to the overrepresentation of women in clerical and administrative occupations, which are among the job categories most exposed to GenAI.

Such roles frequently involve tasks including data entry, document formatting and scheduling, which AI technologies are increasingly capable of performing.

Regional differences in AI exposure

The study also identifies significant differences in occupational exposure to GenAI across regions.

In high-income countries, approximately 34 per cent of jobs are in occupations exposed to GenAI, compared with 11 per cent in low-income countries.

Middle-income regions, including Latin America and parts of Asia, fall between these two categories.

Europe and Central Asia report the highest gender disparities, largely due to the high concentration of women in clerical occupations and widespread digital adoption.

Meanwhile, regions such as sub-Saharan Africa, South Asia and the Arab States currently have lower overall exposure to GenAI.

However, the study warns that these regions could still face considerable disruption as AI technologies expand, particularly in the absence of adequate safeguards.

It also cautions that lower exposure does not necessarily translate into lower risks. In regions where digital access remains limited and labour protections are weak, even relatively small-scale automation could destabilise vulnerable employment sectors.