Salesforce confirms 200 more job cuts
Job losses follow Salesforce's purchase of ExactTarget
Salesforce Marketing Cloud, with operations in New Brunswick and Nova Scotia, has confirmed it is cutting another 200 jobs, after the social media monitoring company shed more than 100 jobs last fall.
A Salesforce spokesperson said in an email statement the job losses follow a recent acquisition of another company.
"Combining ExactTarget with our existing Marketing Cloud provides synergy, and we will be reducing our total headcount by approximately 200 people globally to reflect this opportunity," the statement said.
"We care deeply about our employees and we’re providing resources to position them for success in the next step of their careers — whether that’s a new position within salesforce.com or a new opportunity elsewhere."
The company official would not say how many jobs were lost in each Salesforce location, but "approximately one-third of the employees impacted today are located in New Brunswick."
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 are coming 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.
Nora Lacey, an official with Invest NB, said Salesforce informed the Crown corporation of the 200 job losses. But Invest NB has not been informed of where those jobs will be eliminated.
"At this point in time, Invest NB has not lost any funds on this agreement," Lacey said.
"Payroll rebates are an important tool for us, the funds are only dispersed with the positions are created and maintained."
Salesforce has created 115 "incremental positions" in the first two years of the five-year agreement with Invest NB.
Lacey said the economic development corporation monitors the staffing levels of companies it offers payroll rebates to every quarter. She said Invest NB will take into account "any fluctuations or changes in staffing."
Lacey said Salesforce still has three years to fulfill its agreement with Invest NB.
"Our expectation is the company will meet the 300 positions as per the agreement," she said.
New Democratic Party Leader Dominic Cardy said the company's latest round of job cuts shows the failure in economic development policies of both the Progressive Conservative and former Liberal governments.
"Once again, we see a situation where government invested huge amounts of time and effort into trying to pick economic winners and losers, only to see promised jobs not only fail to be created but actually disappear," Cardy said in a statement.
Cardy also criticized the payroll rebate policy used with Salesforce.
"The point is that even if the money was not spent, there was $3.8 million of public funds that were put on hold for this company, funds that could have been put to much more effective use laying the foundation for sustainable economic growth, funds that would enhance and nurture the workplace talents of New Brunswickers as a means of creating jobs," Cardy said in a statement.