Canva Offers Generous Severance Package During Layoffs

Australian Multinational Software Company Canva has recently announced a 22% cut in its workforce, but what has made headlines is its empathetic approach while doing so. The 1,271 affected employees will receive 6 months of severance pay and other considerations. The decision comes after the company faced its slowest growth in a decade, also caused by falling investments due to growing AI competition and a changing market.

The company is also creating its own AI models to reduce dependency on external AI providers as well as to offset costs, as growing AI expenses forced a lowering of revenue growth to 20%. The highlight, however, is the generous severance pay and networking opportunities that will support and help former employees to navigate the complex market. This empathetic approach to a usually unpleasant procedure has drawn praise and applause for how layoffs should be conducted.

Six-Month Pay and Other Perks

Laid-off employees will be allowed to keep their company-issued MacBooks to allow job-seeking during this sudden change. They will receive a six-month severance pay, including statutory entitlements regardless of where they are based, according to The Indian Express. The perks continue with a one-year premium LinkedIn subscription, one-on-one career coaching, and assistance in resume building and interview preparation.

Canva is also creating an opt-in alumni directory where former employees can connect with possible employers and contacts in the industry. Employees will still have access to a year of healthcare coverage in the countries where this service is currently being provided. The benefits are also extended to stock, where individuals who have joined in the past year can still retain equity without compensating the company. In addition, the Canva collective fund is offering a 10,000 USD grant without equity in return to laid-off employees. This is to support them in starting their own business or community projects without having to struggle with finances.

The Impact Of Artificial Intelligence

This is one of many esteemed tech companies that are facing the wrath of growing Artificial Intelligence in job markets. With rising startups and easy-to-access AI services, companies like Canva are facing immense competition from newer ventures that cost less but do more. People are relying more on AI for image creation and editing, which was what Canva specialised in. AI also offers cheaper solutions at a faster pace. However, its replacement of human beings in many workspaces, especially in technology, has caused concern and fears among employees.

Lay-Offs Increase Mental Health Struggles

Losing a job can cause abrupt and long-lasting mental and physical problems. It brings a sense of loss, low self-esteem and confidence, shock and confusion, as well as depression and anxiety. Layoffs can also cause insecurity and self-doubt, especially with regard to one’s ability, which further translates to hesitation in applying for new jobs.  It also causes fear among the employees who have been retained, with higher pressure and demand for the same salary.

This creates a pressured work environment which can cause panic, fear, and stress, among other mental disturbances. The increased risk of suicide due to immense work pressure or uncertainty caused by unemployment. In a country like India, where other people’s opinions and judgment matter more, especially to an older crowd like families and parents, individuals could struggle with mental health problems that may have been non-existent or mild before.

Positive Approach To Job Loss

Losing a job brings a multitude of fears and negative emotions, particularly anger, sadness, depression and panic attacks. In such situations, it is important for non-affected people like friends, family or even children to maintain a supportive and empathetic approach.

• Avoid blaming or negative talk
• Help them with networking or job search
• Offer a listening ear
• Minimise unnecessary advice
• Research signs that could hint at suicide or other risks
• Extend support with positive speech and actions
• Avoid misleading them with false truths 
• Encourage them to seek therapy or help if needed

Conclusion

Canva’s decision to continue supporting its employees despite its layoffs changes the age-old methods by which such bitter procedures have been conducted. It also pioneers a new way to address something as sensitive as job loss by ensuring support until the situation can stabilise. This refreshing approach also highlights the impact of empathy and community during a time of loss and confusion, qualities that no advanced AI can master as well as humans.