Calgary tech firm Benevity lays off 137 workers, cites poor market conditions

A Calgary tech firm says weak market circumstances are in charge for its choice to put off 14 per cent of its workforce this week.

Benevity, an organization that gives transaction processing companies for charitable campaigns, introduced the news on Wednesday, saying {that a} earlier choice to “significantly increase” its workforce might have been untimely.

“The hard reality is that as a company we are overbuilt for current market conditions,” stated CEO Kelly Schmitt in a web based assertion.

“With that, now we have made the tough choice to cut back the scale of our staff by 14 per cent, and immediately we’re saying goodbye to 137 passionate Benevity-ites within the course of.

“I am truly sorry that we’ve come to this point, and I take full responsibility for the decisions that led us here.”

Schmitt says every worker who’s being laid off might be assembly with senior leaders to debate transition choices. She says these staff might be supplied prolonged well being advantages, profession transition assist, possession of firm laptops and “generous severance” packages.

“To our teammates who are leaving today, we are truly grateful for your contributions to Benevity, our culture and our moonshot – we are proud of the impact that we have made together,” she stated.

‘TECH SECTOR IS NOT IMMUNE’

The Alberta NDP says they’re disenchanted to listen to of the news of the layoffs at Benevity.

In a press release, financial growth and innovation critic Deron Bilous stated the news is tough to listen to within the midst of the affordability disaster.

“Our economy is facing headwinds as we head into 2023, and despite growth in the last couple of years, the tech sector is not immune. The layoffs at Benevity follow reports of layoffs at other Calgary-based tech companies in recent weeks,” he stated.

Bilous additionally pointed among the blame on the UCP authorities.

“Rather than supporting the tech sector, the UCP declared financial diversification a luxurious and cancelled tax credit that created instability within the sector and drove out funding.

“As a result, tech investment continues to lag much of the rest of the country and fails to keep pace on a per capita basis.”

CTV News has reached out to the Alberta authorities for remark in regards to the layoffs.

Benevity arrange store in Calgary in 2008, providing charitable-donation administration and grant-management platforms to companies. It is one in all Western Canada’s largest tech startups.

Its head workplace is situated in Bridgeland.