Cisco, Ontario reach deal that could create up to 5,000 jobs
A Cisco logo is seen at its customer briefing centre in Beijing, Nov. 14, 2013. REUTERS/Kim Kyung-Hoon
OTTAWA — The province and Cisco have reached a blockbuster $4-billion, 10-year deal to create up to 5,000 jobs across Ontario over the next decade.
The province is throwing in a grant of up to $220 million to support the project, though the company must hit specific investment and job targets.
The positions will focus on research and development for the first six years. The investment includes up to $2.2 billion for salaries.
Roughly 1,700 positions at the information technology company are expected to be created in Ottawa and Toronto by 2021, bringing the company’s headcount to 3,000 in Ontario.
Premier Kathleen Wynne announced the deal Friday at Cisco’s Toronto headquarters. Energy Minister Bob Chiarelli joined the press conference via video conference from the company’s development centre in Ottawa’s west end.
The announcement represents “a major vote of confidence in the talent and creativity of the Ottawa region’s technology workers,” Chiarelli said.
“Ottawa’s technology hub plays an integral role in placing Ontario among North America’s industry leaders.”
Ontario is expected to become one of the network equipment-maker’s global R&D hubs for its next generation technologies.
“We’re sending a message to the world that Ontario is the best place anywhere for business to innovate, grow and create jobs,” Economic Development Minister Eric Hoskins said.
About 250,000 people are employed in Ontario’s information and communications technology sector, ranking it third in North America behind California and Texas.