‘A master class in how to handle layoffs’: Canva is restructuring 22% of its workforce, and LinkedIn is applauding the exit package

Most layoff announcements draw anger. Canva’s is drawing applause.

Co-founder and CEO Melanie Perkins announced on Tuesday that a sweeping restructuring will affect 1,271 employees, or 22% of the Sydney-based design company’s workforce. Her note to staff , which she also shared on LinkedIn, quickly became an online case study in how to cut jobs, largely because of what Canva is giving the people who leave.

Jasveer Singh, co-founder and CEO of KnotDating, called it “a master-class in how to handle layoffs” and described Perkins’s announcement as “thoughtful, honest and generous,” Newsweek reported . Mark Di Stefano, Rear Window editor at the Australian Financial Review, called the package “exceedingly generous.”

Commenters on Perkins’s LinkedIn post struck a similar note. “Really impressive, empathetic, transparent, and generous way to communicate what was undoubtedly a very hard decision,” one wrote, according to Fast Company . On Instagram, the praise turned to envy. “How do I apply to be fired by Canva?” one user asked, American Bazaar reported .

The goodwill comes at a delicate moment. Perkins wrote that Canva’s growth slowed this year for the first time in a decade, and in August the company cut its 2026 revenue growth forecast from 30% to 20%, the Australian Financial Review reported .

For some of the 1,271, the restructuring means new roles or a request to relocate, with Sydney becoming the main base for more product teams. For others, it means leaving the company. Canva has not said how many will lose their jobs.

In her note, Perkins said the company is “simplifying layers, consolidating overlapping responsibilities, and ensuring teams have the right mix of skills and experience for the chapter ahead.” As Canva grew, she explained, work was divided among more specialized teams, leading to “fragmented ownership” and making it harder to see the bigger picture. The goal, she said, is “getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership, and focus on what matters most for our community.”

A Canva spokesperson told Fortune these roles are not being replaced by AI. “AI is changing what’s possible for our community and the kinds of products we’re now building. That also changes how we need to organize our teams and the skills we’ll need. These changes are about setting Canva up to build those products, not using AI to do the work of people who are leaving.”

Fortune , which put Perkins on its cover in 2022 , has reported that the restructuring is part of a broader AI-driven rethink of the company .