Ceridian opened its Charlottetown office in 2007 (CBC)

The P.E.I. government has cancelled a multi-million dollar contract with a company that provides training and recruitment services.

The province said Ceridian didn't create the number of jobs it was supposed to in agreements made when the company moved to Charlottetown in 2007. Ceridian is a human resources services company with more than 8,000 employees around the world. It established a Charlottetown office under a deal brokered by the administration of former premier Pat Binns.

The company announced it would hire one hundred people over the next three years, then upped that to 200. In return, government offered tax credits worth up to $3 million. It also signed a five-year contract with Ceridian to provide training and recruitment for the Public Service Commission, business that would be worth up to $1.6 million a year for the company.

The relationship between Ceridian and the P.E.I. government remains strong, says Finance Minister Wes Sheridan. (CBC)

The government said Ceridian missed its employment target for 2012 by about 25 positions, and the cancellation of the contract was mutually agreed upon.

"Ceridian has been a very strong partner here with Prince Edward Island," said Finance Minister Wes Sheridan.

"Our relationship has remained strong and out over the first number of years many of the targets were met. But things have changed around the globe of course and Ceridian is not able to meet those targets at this time."

Sheridan said Ceridian remains eligible to apply for any requests for proposals government issues in the future for training and recruitment of provincial public servants.

The company said it still has a good working relationship with the province and there will be no local layoffs because of this change.