Canva and Squarespace have announced layoffs with unusually generous exit packages. Canva is cutting 22% of its staff; Squarespace, 19%. Canva's laid-off employees keep their company-issued MacBooks, six months of salary, a LinkedIn Premium subscription, and a year of healthcare. Squarespace offers 16 weeks of severance, healthcare through May 2027, and laptops, plus career coaching. Elton Chan, chief executive officer of Second Talent, said such packages protect morale among remaining staff and the company's reputation. Joe Mull, an employment engagement expert, noted that employees now share layoff stories on TikTok and LinkedIn, which can cost firms talent and customers. Chan doubts the packages will become standard. They depend on a company's financial position, he said.

Canva has laid off or asked to relocate 22% of its workforce, about 1,200 people, as AI squeezes the design startup. Cofounder and chief executive officer Melanie Perkins called it "without doubt the hardest moment in our 13-year history." AI has forced Canva to cut its growth forecast. It faces the cost of providing AI features users now demand, while those users can turn to other AI tools to create visual assets they once made on Canva. Departing staff get six months of severance, career search resources, and $10,000 grants for those who want to start their own ventures. Perkins wrote that "small changes won't be enough." She plans to "refound" Canva and regain the agility of a younger startup.