Province defends Salesforce help despite job cuts
California-based social media company cut 200 jobs
The New Brunswick government is defending its payroll rebate incentive following the recent announcement of more job cuts at Salesforce Marketing Cloud.
The California-based company is shedding 200 jobs and the company estimates one-third of the employees who will be out of work are located in New Brunswick.
Salesforce is in the second year of a five-year payroll rebate agreement with the provincial government.
Energy Minister Craig Leonard said the Alward government has to invest in the private sector to remain competitive and maintain jobs in the province.
"Firms, sometimes they do need that, they need that extra help and others take advantage of it because they're highly sought after and there's a competive bidding process basically that goes after those jobs," Leonard said.
Salesforce Marketing Cloud, which bought the Fredericton-based Radian6 in March 2011, confirmed in October that it was eliminating about 100 jobs globally.
Those job cuts came four months after the social media monitoring company announced plans to create 300 new full-time jobs in Fredericton and Saint John with the help of a $3.8-million payroll rebate from the provincial government.
Leonard said payroll rebates are only paid out if the jobs are in place, so no money will be lost as a result of the job cuts.
An Invest NB official said on Thursday that Salesforce has created 115 "incremental positions" in the first two years of the agreement. The official said the corporation expects Salesforce to create 300 jobs by the end of the agreement.
Meanwhile, the Liberal Opposition says the province should help the more than 60 laid-off Salesforce workers land another job in New Brunswick.
"What we need to do is focus and encourage strongly, the government, to work with these laid-off employees and try to use their high skills they acquired through the company and see if there are other opportunities for them," said Liberal MLA Roger Melanson.
Liberal MLA Roger Melanson said