Japanese co earlier pledged US telco jobs

Japan's SoftBank Group Corp, which has a stake in US companies Sprint and OneWeb, has pledged to invest $US50 billion to create 50,000 jobs in US.

US President-elect Donald Trump

Donald Trump is set to reveal an economic plan that will be a boost to US workers. (AAP)

US President-elect Donald Trump says telecommunications group Sprint Corp and a US satellite company OneWeb will bring 8000 jobs to the United States, and the companies say the positions were part of a previously disclosed pledge by Japan's SoftBank Group Corp.

SoftBank holds stakes in both companies and its chief, billionaire businessman Masayoshi Son, earlier in December said he would invest $US50 billion ($A70 billion) in the United States and create 50,000 jobs.

Sprint in January said it had cut 2,500 jobs as part of its plan to cut $US2.5 billion in costs. On Wednesday it said it would create 5,000 jobs in areas including sales and customer care by the end of its fiscal year ending in March 2018.

Sprint spokesman Dave Tovar said the jobs were part of the pledge made by Son but would be funded by Sprint.

SoftBank and OneWeb had announced on December 19 that the Japanese company was leading a $US1.2 billion funding round.

OneWeb plans to use the funds to build a plant in Florida to produce low-cost satellites, creating almost 3000 jobs at the company and its suppliers.

SoftBank described its $US1 billion share of the funding as the first tranche of the $US50 billion promised by Son in a meeting with Trump.

It is not clear whether the $US50 billion SoftBank investment would be part of a $US100 billion tech investment fund that the head of SoftBank and Saudi Arabia's sovereign wealth fund had announced earlier in the year.

"I was just called by the head people at Sprint and they are going to be bringing 5,000 jobs back to the United States, they are taking them from other countries," Trump told reporters outside his Mar-a-Lago estate in Florida.

"And also OneWeb, a new company, is going to be hiring 3,000 people. So that's very exciting," he added.

Shares of Sprint Corp, which is 82 per cent owned by SoftBank, were barely changed in after-hours trading.


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Published 29 December 2016 11:56am
Source: AAP


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