Despite layoffs disclosed Wednesday, software and services firm Citrix is still eligible to receive as much as $5.7 million in state tax incentives if the firm hits commitments for new jobs in Raleigh, according to the Department of Commerce.
“For the JDIG announced in 2016, yes – the company is still eligible for the $5.7 million in incentives and it’s too soon for us to know how today’s layoffs will affect their eligibility,” said David Rhoades, Communications Director for the North Carolina Department of Commerce.
“2017 is the first working year of that grant and Citrix will not report this year’s performance to us until March 2018.
“Once they report, Commerce will go through its normal review process before any payment is made against that particular JDIG. This JDIG runs for 10 years. So the $5.7 million, if Citrix makes their targets, would be paid out over those 10 years, not all at once.”
Citrix, which bases its ShareFile business in Raleigh, committed to creating 400 new jobs in order to receive the Job Development and Investment Grant, or JDIG, last December.
Laid-off employees told WRAL TV on Wednesday that “dozens” of people had been affected by the job cuts.
Citrix did tell WRAL TechWire that it would continue to hire additional employees in Raleigh as part of a realignment.
Citrix has yet to file a mass layoff notice known as a WARN report as of Wednesday afternoon.
Commerce will monitor Citrix for hiring and jobs, Rhoades said.
“For our JDIGs, the grant terms run over many years, and payments are not made all at once but rather yearly, and only after the companies report job and investment performance each year and those statistics are verified by teams here at Commerce and at the Department of Revenue.
Read the details of the JDIG at:
http://www.nccommerce.com/news/press-releases/u4733q/436974726978?udt_4733_param_detail=193943
