Canva Lays off 1,271 with Whopping Severance: What are India's Severance Rules? What's Behind Big Job-Cut Waves in 2026?

Canva’s recent order to cut 1,271 jobs, around 22 per cent of its workforce, has ignited attention for its scale and severance support. The Australian design companies lay off package reportedly encompasses six months’ salary, the option to keep company-issued MacBooks and support services. The move joins the recent way of other major technology companies restructuring teams with layoff spells.

Why are layoffs the “Hardest moment in 13-year history” of Canva?

She added that the restructuring is the “hardest moment in our thirteen-year history”, observing that Canva needed to return to its roots as a smaller company with “empowered teams” that have the freedom to execute decisions and take ownership of their work

What Is Canva Offering Laid Off Employees?

Canva has stated that departing staff will secure at least six months of pay, inclusive of statutory entitlements, regardless of location. Employees who joined within the previous year will have the one-year vesting cliff exempted. In countries where healthcare benefits are provided, support will persist for 12 months. Departing workers and their families will also receive  the company’s employee assistance programme. Employees can also retain their work MacBooks.

The layoffs form a part of the company’s overhaul. Canva aims to combine product, growth and platform teams, simplify management structures and consolidate roles. It has quoted slowing growth and the need to prepare for its future challenges. Competition from AI-powered design tools and evolving AI costs are also impacting decisions.

Why Are Layoffs Happening in Repeated Waves?

Canva’s declaration showcases a wider pattern. Big technology firms are continuously declaring workforce reductions in stages. HR officials say this can happen when firms restructure across departments and locations, or when business units react to soaring demand, overlapping roles and changing priorities.

Amazon, Meta, Oracle, Uber and Workday have declared job cuts during 2026. Around 1.76 lakh job layoffs were reported across technology, finance, retail and manufacturing between January 1 and September 23. A fresh round does not always signal a financial crisis; companies may be clashing earlier plans or shifting resources.

Is AI Responsible for Every Job Cut?

Besides many key reasons behind layoff, Artificial intelligence is also a crucial one as it is changing hiring demands and automating tasks, especially clerical work, customer support and parts of software development. But layoffs can also feature cost control, weaker demand, discontinued products, management shifts or productivity goals. AI investment may establish roles even as it lowers demand for existing ones.

What Does This Mean for Employees?

Constant restructuring can leave employees uncertain about cuts. Left over teams may witness harsher workloads, while laid off professionals can see longer job searches, reduced salaries or interrupted careers. Entry-level job scope may also deplete.

Experts state that retraining and redeployment are choices especially when business necessitates change. Canva’s package provides support, but it does not deletes uncertainty circling technology employees.

Severance Pay Rules for Employees in India

Severance-linked compensation and notice pay are mandatory in India, but eligibility relies massively on whether you are listed as a "workman" (commonly as non-managerial, non-supervisory, or technical employees) under labor laws and the kind of the termination.

Why Are These Jobs More Resistant to AI?

Three major factors make these professions comparatively difficult to automate:

Human interaction: Healthcare, nursing and hospitality need empathy, communication and trust.

Physical skills: Construction, plumbing, electrical work and maintenance involve physical tasks in unpredictable environments.

Real-world decision-making: Agriculture, healthcare and transportation require decisions based on changing circumstances.