Benevity's Quiet Cuts: Whispers of Layoffs Spark Old Worries in Calgary's Tech Scene
We’re hearing whispers about Benevity reducing team sizes and closing an international office. No media buzz yet, but it's got people talking. Anyone else in the loop?
A little bird, or rather, a keen "Hot Minute Calgary" reader, dropped us a line recently about quiet team reductions at Calgary tech giant Benevity, including the closure of an international office. The rumour mill suggested a recent "one person from every team" kind of cut, and notably, no public media mention. While specific *recent* numbers remain under wraps, these whispers are loud enough to echo a not-so-distant past that hit our city's tech sector squarely.
Back in January 2023, Benevity, a cornerstone of Calgary's tech landscape, made headlines (the ones we *did* hear) for laying off 14 percent of its staff – a significant 137 individuals. CEO Kelly Schmitt acknowledged the company had been "overbuilt for current market conditions," a phrase that sent shivers through many local innovators and their families. For the average Calgarian, these aren't just statistics; they represent neighbours, friends, and family members grappling with unexpected job loss, impacting everything from mortgage payments to the general economic optimism permeating our Stampede City. When a major player like Benevity adjusts, it sends ripples through our entire talent pool and the confidence we place in our growing tech ecosystem.
Why These Whispers Matter to Every Calgarian
The scale of those 2023 layoffs also brings into focus Alberta's Employment Standards Code. This policy requires employers to give the Minister responsible for Employment Standards at least four weeks' written notice if they plan to terminate 50 or more employees at a single location within a four-week period. While individual notices are always required, this group termination clause is designed to give the province a heads-up on significant economic shifts. It's a measure meant to safeguard our community when large employers make big moves.
The political commentary from that time also resurfaces. Deron Bilous, then the Alberta NDP economic development and innovation critic, noted that "Our economy is facing headwinds... the tech sector is not immune." He even pointed a finger at the UCP government for cancelling tax credits, arguing that such decisions could exacerbate the challenges faced by local tech companies. Regardless of political stripe, a healthy, thriving tech sector means more high-paying jobs, more innovation born right here, and a more diversified economy for all of us. When companies like Benevity, known for its philanthropic software, face these challenges, it prompts crucial questions about the support and environment we're providing for our homegrown innovators.
These recent unconfirmed reports, whether they're new cuts or echoes of past ones, remind us that Calgary's tech journey isn't always smooth sailing. For a city striving to diversify beyond traditional industries, keeping a pulse on the health and stability of our tech sector – and demanding transparency from its major players – is paramount to our collective economic future.
