Apple plans to open new USA campus, add 20000 jobs

Katrina Barker
January 19, 2018

Apple says it plans to add 20,000 American jobs in addition to the 84,000 people it already employs in the United States. "Great to see Apple follow through as a result of TAX CUTS", Trump said in his tweet.

Apple also informed employees worldwide on Wednesday that they would receive a $2,500 stock bonus in response to the new USA tax code, according to a source familiar with the matter.

Technically the new law mandates that Apple pay this tax on its foreign cash. Companies like Apple, Google and Amazon have each been accused of monopolizing their respective industries and displacing jobs through automation.

Apple announced on Wednesday, among other initiatives, that it plans to build a new campus in the United States, as part of an effort to hire 20,000 new Apple employees over the next five years.

Apple yesterday touted its new one-time tax payment of around $38 billion as likely "the largest of its kind ever made".

"On the one hand, this is a record payment".

Apple had US$252.3 billion in overseas cash as of the end of September quarter, according to SEC filings, so that means the company is paying tax on almost all of that foreign cash.

As part of the tax agreement with government officials, Apple will also be able to bring its $252.3 billion of foreign cash back to the States.

Late previous year leaked financial documents known as the Paradise Papers revealed that Apple shifted much of its offshore wealth from Ireland to a tax haven in the British Isles. $10 billion of that will be in data centers in the US. Nevertheless, the new corporate tax laws are definitely advantaging the tech giant. With the announcement, he said, "We have a deep sense of responsibility to give back to our country and the people who make our success possible'".

That echoes statements Cook made a year ago, when he told The New York Times that companies have a "moral responsibility" to grow the economy in the United States.

Apple had earlier said it planned $16bn in capital expenditures in 2018, up from about $15bn in the prior year.

Although Apple's decision to open a new campus at first might sound similar to Amazon's announcement a year ago that it is opening a second headquarters (HQ2), there are a lot of differences between the two scenarios.

Trump and lawmakers are hoping that companies use the extra money to raise wages, expand payrolls, open more offices and invest in new equipment.

As part of Apple's "commitment to support the American economy and its workforce", the initiative announced Wednesday commits $55 billion to the United States economy in 2018.

Trump has described Apple moving back as a "huge win for the US". Apple does make some hardware in the U.S., but most of its products are produced and assembled in China.

When asked about the incident, Cook apologized to Apple users who believe that the company deliberately slowed the processors down in older models.

The company also is increasing its domestic manufacturing partner and supplier fund from $1 billion to $5 billion, which indicates it intends to do more domestic sourcing for its products. The fund's objective is to encourage innovative US companies, help innovative foreign companies move to the U.S, and create jobs.

Other reports by AllAboutTopnews

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