CyberNB Shuts Down, Lays Off Staff After Province Pulls Funding
FREDERICTON–New Brunswick’s flagship non-profit cybersecurity organization is unable to make ends meet and is shutting down.
In a move that came as a surprise to many CyberNB announced plans to shut down and lay off its entire staff. CEO Jeremy Depow told CBC on Monday that the company will not have enough money to pay its staff at the end of the week–or its rent.
The province, through its economic development agency Opportunities New Brunswick (ONB), provided more than $1.3-million in transitional funding to the non-profit Cyber NB over the last two years, with the goal of helping it become self-sufficient.
The final installment of that funding was recently denied to the organization.
In a statement emailed to Huddle, Opportunities New Brunswick representative Abigail McCarthy said ONB’s agreement hinged on the financial viability of CyberNB.
After reviewing the financials and projections, McCarthy said ONB was unable to advance further funds “due to the organization not meeting key milestones on their path to self-sufficiency.”
“Cyber NB’s leadership advanced a business plan that demonstrated a path to self-sufficiency whereby they would no longer be reliant on provincial government funds for core operations. To date, the execution of the plan has failed to meet expectations,” she said.
McCarthy said the province is unable to comment on CyberNB’s decision to close.
Cybersecurity Industry ‘Clearly Not Going Away’
Fredericton Chamber of Commerce CEO Krista Ross said CyberNB was one of many stakeholders in New Brunswick’s cybersecurity ecosystem, which is one of the world’s fastest-growing sectors.
“The closure of the organization is unfortunate but what it doesn’t change is our focus on developing the sector,” Ross said.
“I’d say the issue of cybersecurity is clearly not going away and it’s growing exponentially so the industry will not be going away. The ecosystem here is complex and many partners and organizations are working to grow the sector.”
McCarthy agreed New Brunswick’s cybersecurity sector is still growing, with the recent announcement that the National Cybersecurity Consortium has been funded nearly $80-million in federal money.
“CyberNB played a paramount role in the early dates in the establishment of this ecosystem in the province,” McCarthy said.
Ross said CyberNB did great work with its partners, building and attracting talent but there is still much growth potential.
“We definitely feel for people losing their jobs but with the opportunities and growth of the sector Hopefully they will have opportunities brought to them in the near future,” she said.
Ross said companies in the sector like Beauceron Security, Sunray Systems, Mariner Partners and Bulletproof are bringing millions of dollars of investment into the province, which are signs of a healthy sector.
She said there’s still active investment into cybersecurity–a sector that boasts more than 700 jobs in the province–and that Fredericton has the necessary elements for continued growth with its infrastructure in Fredericton’s Knowledge Park Innovation District Hub and High Tech Cluster and its dynamic post-secondary presence with UNB.
What Happens To The Cyber Centre?
Late last year, CyberNB moved into a 12,000-square-foot berth on the first floor of the Cyber Center, which is part of the Knowledge Park.
“That building is purpose-built to support operational capabilities and is in the process of signing leases for new tenants. Although CyberNB was a tenant, it wasn’t their building,” said Ross.
The 142,000-square-foot Cyber Center boasts its own onsite backup power generation and Level 2 security capabilities and hosts several other tech businesses, including Bulletproof Solutions, Canadian Nuclear Laboratories and Siemens.
In a call with Huddle, a spokesperson for Ignite NB, the local economic development agency that owns the facility, said the agency has no comment on the news about Cyber NB.
Sam Macdonald is a Huddle reporter in Moncton. Send him your feedback and story ideas: [email protected].