Apple Plans Massive Office Expansion, Generating New Jobs

Apple has pledged to build new offices in a number of U.S. cities, including Austin, Seattle, San Diego, and Los Angeles. The Austin campus will cost roughly $1 billion and house 5,000 employees at the outset, with room for 15,000 total; the other offices will have more than 1,000 employees each.

“Apple is getting some incentives for the Austin expansion in the form of a $25 million grant from the state of Texas and what’s likely to be tens of millions of dollars in local property tax abatements,” wrote Ina Fried of Axios, who reported the news.

Apple’s overarching target is to create 20,000 new jobs in the U.S. by 2023 (it currently employs 90,000 people in the country). In theory, these new offices will help it expand and solidify its presence in arenas vital to its future; the staff in the Los Angeles office, for example, will presumably drive the company’s rumored plans in streaming content.

Apple isn’t the only major tech firm touting its rapid expansion. Last month, Amazon announced that it would split its proposed “second headquarters” (also known as HQ2) between two locations: Crystal City, Virginia and Long Island City, Queens. The two locations will cost a combined $5 billion and host up to 50,000 employees (split evenly between the two).

Like Apple, Amazon managed to land some big concessions from its host states. New York promised incentives worth nearly $2.8 billion, for example, which drew ire from community representatives who felt that money was better spent on the city’s crumbling infrastructure and schools.

Although Amazon intends on establishing a major tech hub in New York City, it will face a battle for local talent with Google, which plans on adding 14,000 employees over the next decade to its already-huge Manhattan outpost.

These employment projections, of course, depend on the tech industry maintaining its aggressive growth (and stunningly low unemployment rate). Given how tech follows the same ups and downs as any other industry, there’s always the possibility that this proliferation of “second headquarters” and “major offices” could come to an end sooner than anyone expects. Add to that the recent calls from some quarters to investigate Google and Amazon as anti-competitive monopolies, and things become even more uncertain.

But for the moment, it seems that tech giants are comfortable with expanding their physical footprints as wide as possible, and that’s good news for tech pros in New York, Austin, Crystal City, and other places chosen for new development.

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One Response to “Apple Plans Massive Office Expansion, Generating New Jobs”

  1. Tech to the rescue. Some of these cities are experiencing housing pains increases in real estate, rents etc coastal cities are gaining more taxpayers which they need to pay those high taxes with the exception of Austin are winning the war on talent. When was the last time the US had these massive hiring sprees? Sure legacy businesses such as GM, Verizon, Sears are laying off thousands of workers yet technology is replacing those sectors as engines of economic growth.