Apple Inc. (NASDAQ: AAPL) announced it will build a $1 billion facility in Austin, Texas, and add other large operations in Seattle, San Diego, and Culver City, California. Apple said the operations would create tens of thousands of jobs across the locations.
Unlike the competition Amazon.com Inc. (NASDAQ: AMZN) set up across 20 cities that bid for its new “second headquarters,” Apple made no announcement about the process, which means it did not openly ask for benefits like tax abatements to make its decision. This does not mean Apple was unable to get these benefits privately.
The process of adding these locations will take Apple about three years, the company said, and it will not be the end of the process of adding people in locations across the United States. Apple said it will expand into a number of cities between now and 2022. Based on Apple’s math, it added 6,000 jobs to its American employee base in 2018 and currently employs 90,000 people in the United States. Apple said it now has workers in every state. In January, Apple said it was in the process of adding 20,000 jobs in America by 2023. Apple has more than 1,000 workers in each of 16 states.
CEO Tim Cook said:
Apple is proud to bring new investment, jobs, and opportunity to cities across the United States and to significantly deepen our quarter-century partnership with the city and people of Austin. Talent, creativity and tomorrow’s breakthrough ideas aren’t limited by region or zip code, and, with this new expansion, we’re redoubling our commitment to cultivating the high-tech sector and workforce nationwide.
The new Austin offices will be a mile from the existing facility in the city. It will cover 133 acres and handle 5,000 workers. It eventually will expand to 15,000. Apple says that this will make it the largest private employer in the Texas state capital. Austin will be the second largest location in the United States when the expansion is finished. Its headquarters location in Cupertino is the largest.
Texas Governor Greg Abbott said:
Apple is among the world’s most innovative companies and an avid creator of jobs in Texas and across the country. Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers. I thank Apple for this tremendous investment in Texas, and I look forward to building upon our strong partnership to create an even brighter future for the Lone Star State.
Apple’s expansion comes at a time when there is a push and pull over where American companies will put their facilities and create or eliminate jobs. The White House and local officials have battled over a decision by General Motors Co. (NYSE: GM) to close plants in the United States and Canada. Apple has decided to move in the opposite direction.
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