Canon USA got a huge tax break to keep staff employed, and then… they had a layoff… now they may have to return the $7 million back
Canon USA recently laid off between 100 and 150 employees at its Melville headquarters less than a year after getting a huge tax break to keep staff employed. Now they may have to return the $7 million tax break. Here is the timeline of events:
December 14, 2023 - Canon could close Melville headquarters if more tax breaks aren't approved, executive says:
"Canon U.S.A. Inc. may jettison its large headquarters building off the LIE in Melville and have its 1,100 employees work from home permanently if Suffolk County doesn’t grant additional tax breaks, a top executive said. The Japanese camera and photocopying giant is seeking more help because a 10-year incentive package initially approved in 2007 for $35 million is set to expire." (source: Newsday)
December 17. 2023 - Canon USA gets another $7 million tax break after threatening to close shop in Melville, NY:
"Early last week, Canon U.S.A. Inc. claimed that it was going to jettison its large headquarters building off the LIE in Melville and have its 1,100 employees work from home permanently if Suffolk County NY doesn’t grant additional tax breaks, a top executive said. The Japanese camera and photocopying was seeking $7 million in tax breaks over 12 years from the Suffolk County Industrial Development. Last Thursday, Canon won a preliminary approval for an additional $7 million for more tax breaks from Suffolk County. (source: Tonernews)
July 23, 2024 - Canon USA cuts jobs in Melville less than one year after winning more IDA tax breaks:
"Canon U.S.A. Inc., one of Long Island’s largest employers, recently laid off between 100 and 150 employees at its Melville headquarters, according to people familiar with the company. The job cuts represent between 9% and 14% of the Japanese company’s local workforce, which totaled 1,081 employees in December, based on Suffolk County documents." (source: Newsday)
July 26, 2024 - Canon USA. could have to repay tax breaks because of job cuts at its Melville headquarters, letter says:
"Canon U.S.A. Inc. could lose some of the tax breaks it receives from Suffolk County because of recent jobs cuts at its Melville headquarters, according to a letter obtained by Newsday. The county’s Industrial Development Agency, in a Wednesday letter to a Canon executive, said the company agreed on Feb. 1 to create and maintain at all times at the facility: 1,081 full-time equivalent employees. If a smaller number of people are employed that "will be considered a recapture event," where the IDA could claw back some of the tax savings received this year by Canon, states the letter from agency attorney William D. Wexler to company executive Amy E. Newman." (source: Newsday)
July 29, 2024 - Suffolk IDA should claw back Canon's tax breaks:
"For more than a decade, Canon U.S.A., Inc. was touted as an economic engine that would make the most of the millions of dollars it received from Suffolk County's Industrial Development Agency. But in recent years, Canon's business hasn't kept up with a changing world that isn't seeking many copiers or point-and-shoot cameras. Despite that, the Suffolk IDA has continued to prop up the company, granting Canon $7 million in additional tax breaks earlier this year. At the time, Canon pledged to retain its employees and improve its facilities. That didn't last long. Just months later, Newsday has reported that the company headquartered on a prominent corner of the Long Island Expressway service road has laid off between 100 and 150 employees, as much as 14% of its local workforce." (source: Newsday)
Canon even laid off Rudy Winston, known from the "Canon Tech Tips with Rudy Winston" YouTube videos:
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