Choices for Youth lays off 16 staff, cuts employment programs after funding shortfall

A prominent Newfoundland and Labrador youth organization laid off 16 staffers and severed its employment and job training programs Tuesday after losing millions in expected federal funding.

The funding loss — to the tune of $16 million — has hobbled a central mandate of Choices for Youth, which employs around 120 people and offers housing and other support for young people.

"We have been waiting since April for a funding agreement from the federal government," executive director Jen Crowe told CBC News on Tuesday afternoon. "We simply cannot wait any longer."

The laid-off workers made up the non-profit's education, employment and social enterprises team, which was responsible for getting young people into the job market and training them in several industries.

Crowe said Choices for Youth had asked for $20 million over four years but received only $4 million. Despite repeated attempts to clarify whether the rest of the funding would materialize, she said, responses from Ottawa were limited.

"For the staff members impacted, those 16 staff, this is their livelihood," Crowe said. 

"They've committed so much of their time, energy, expertise and experience to supporting these vulnerable youth. And to make the heartbreaking decision today of having to terminate their employment is not where we want to be, but we just felt we did not have a choice at this stage."

A letter sent to a laid-off staffer, viewed by CBC News, says Choices for Youth was terminating their employment without cause and effective immediately. That employee received two weeks' severance pay.

A spokesperson for Employment and Social Development Canada declined a CBC News request for an interview.

The non-profit has been renovating a large, empty warehouse at 340 LeMarchant Rd., using $4.3 million in funding from private sponsors and all levels of government.

The new headquarters was meant to be a retail space and a training school and office, and was slated to house the non-profit's social enterprises, including Crust Craft Bakery, second-hand shop Neighbourhood, Impact Construction and a manufacturing shop.

But Choices for Youth is now shuttering its social enterprises except for its bakery and thrift store. It will also now offer only six paid jobs for youth instead of 40.

"We have very few staff, very little operations to actually move at this stage," Crowe said. "We have a building that's going to sit partially vacant because we simply do not have the funding we need to support and maintain [that] programming."

Crowe also hasn't had the money to staff a rapid rehousing program.