Politician Wants Government to Cut Financial Ties with Radian6 Following Salesforce Layoffs

by Knowlton Thomas

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.

Fredericton, New Brunswick, Canada

Radian6 provides the leading social media monitoring and engagement platform for marketing, communications and customer support professionals. The company’s new Engagement Console enables brands and agencies to monitor all forms of social media, with real-time results, and engage as a team through unique workflow features for tagging, classifying, and assigning of posts. Analysis widgets on the... more

Toronto, Ontario, Canada

Salesforce.com is the enterprise cloud computing company that is leading the shift to the Social Enterprise. Our trusted cloud platform and apps—including our flagship CRM solution—help employees collaborate easily and connect with customers like never before. And thanks to the cloud, all of it comes with low cost, low risk, and fast results. Our 100,000+ successful customers tell the story best. more

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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes and author of Tempest Bound. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys hiking, tennis, and martial arts. more

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