Benevity laying off 14% of staff as demand slows

Calgary-based tech firm Benevity is scaling back its staffing levels as it grapples with a slowdown in demand.

In a note to employees on Jan. 18, CEO Kelly Schmitt said the company is cutting 137 jobs, or 14 per cent of its workforce, claiming that the business is “overbuilt for current market conditions.”

“Demand for our solutions and the appetite of companies to make an impact on social issues have been growing consistently for more than a decade,” Schmitt noted.

“In response to that demand, we significantly increased the size of our team, but over the last nine months, macroeconomic conditions have changed dramatically, and the demand we expected to see has slowed significantly.”

In addition to Calgary, Benevity has offices in other major Canadian cities, including Toronto and Victoria.

According to LinkedIn, the company employs a global workforce of more than 980 people.

Major tech layoffs continue

Benevity is the latest in a growing list of North American tech companies that have announced significant layoffs this year.

Microsoft, Thinkific, Cloud Software Group, Amazon, and Salesforce are eliminating thousands of jobs as they continue to monitor market conditions.

SEE ALSO
• Female Twitter staff ‘targeted’ during mass layoffs, lawsuit alleges
• Employment lawyer on mass layoffs in the tech industry
• Layoffs in Canada

Termination agreements for Benevity employees

As part of the layoff announcement, Benevity said affected staff will receive “generous severance” as well as:

• Bonus considerations
• Extended health benefits
• Ownership of company laptops
• Career transition support

In Canada, non-unionized employees and senior executives at Benevity are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance packages in mass layoffs
• Severance for technology industry employees
• Rights to severance for provincially regulated employees

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.