Yesterday we broke the news that Salesforce was laying off up to 100 Radian6 employees. As you likely know, Radian6 was a Canadian startup success story that Salesforce acquired last year for more than $300 million.
In response to this news, New Democratic Party Leader Dominic Cardy is suggesting that Premier David Alward should cancel a $3.8 million payroll rebate agreement with Radian6 following the layoffs. The province’s NDP leader believes the provincial government should sever its financial ties with the New Brunswick-born company.
“I am calling on the premier to cancel the $3.8 million handout to Radian6 and to provide a full accounting of how the rebate was negotiated, what conditions were included, and how the government plans to avoid similar mistakes in the future,” Cardy said in a statement.
Salesforce would not confirm how many jobs were lost in its New Brunswick offices, located in Halifax, Saint John, and Fredericton. But the news stings because Radian6 promised to create 300 new full-time jobs in the province as a result of the aforementioned rebate.
Fortunately for the province, it has not yet paid any of the $3.8 million. But it’s still only in the first year of what is (for now at least) a five year agreement.
Nothing about the situation is black and white, affirms David Alward: “If Radian6 used any of the $3.8 million that means they spent our tax money and then killed New Brunswick jobs. If they didn’t use the money that means the government knows that Invest NB is an investment in Conservative poll numbers, not the New Brunswick economy.”
Radian6 was founded in 2006.