The mining industry is reporting a loss of 1,200 jobs.
It’s a third year of declining mining employment in Alberta and the country’s third-largest producer of oil and gas.
“This is a really, really, very disappointing number for the mining industry,” said Rob Anderson, vice president of salesforce Mining, a Canadian mining company.
Anderson said the loss of sales force jobs will have a significant impact on the companies bottom line.
“The numbers are really, in my opinion, a reflection of the fact that the business is not doing as well as we hoped it would,” Anderson said.
Salesforce says its mining business is now $1.8 billion in the red, down more than 25 per cent from a year ago.
The company says it has reduced spending and is working to improve performance.
Anderson says salesforce’s performance has improved in each of the last three years, and he believes the company is on track to post a solid quarterly profit.
SalesForce is currently ranked as the third-most profitable company in Canada.
Anderson estimates that the mining business lost 1,400 jobs in Alberta last year.
He says the number of people working for the company has declined by 20 per cent in the past year.
“Our mining business has seen some really challenging economic conditions, which is a big factor for us, because we are an industry that employs so many people in the industry,” Anderson told CBC News.
Sales Force’s numbers are based on the number and type of jobs lost by salesforce employees as well the number that were replaced with other positions.
Anderson also said the company’s salesforce business is growing.
Sales force has seen its average earnings per share grow from $1,053 to $1 and it currently has $1 billion in cash and marketable securities, Anderson said, adding that the company expects its total cash position to grow from about $1 trillion to $2 trillion this year.
Anderson, who is also CEO of Royal Dutch Shell, said he believes salesforce is on course to post solid quarterly earnings of about $5 to $6 billion in 2017.
“I think salesforce can be the next big player in Alberta,” he said.
The Saskatchewan Premier, Brad Wall, also expressed concern about salesforce.
“I believe the mining sector is going through a tough time, especially in this province, and the company needs to take a hard look at its business model,” he told CBC.
Wall said he will introduce legislation this fall to prevent salesforce from going under.
The Alberta government recently announced a $1-billion investment to improve the provincial mining sector.