Donald Trump, President-elect, announced on Wednesday that Sprint, a mobile phone carrier, was moving 5,000 jobs back to the U.S. He said, “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 have taken them from other countries. They are bringing them back to the United States.”
However, it transpires that the jobs were part of a previous announcement to create 50,000 positions in the U.S. Japan’s Softbank which has a controlling stake in Sprint announced the creation of the new jobs, as part of a $50bn investment in the country.
Softbank is also creating a further 3000 jobs in the U.S. It is a major investor in OneWeb, a satellite company. Both plans predated the election.
Adrienne Norton, a spokeswoman for Sprint said, “It will be a combination of newly created jobs and bringing some existing jobs back to the U.S.”
Sprint is hoping that under the Trump administration the acquisition by T-Mobile can go through. Share prices in Sprint have risen by 40% since the acquisition rumours surfaced. The current administration is weary of telecom deals and this is believed to be the delay in the acquisition going ahead.
In January, Sprint cut 2,500 jobs in call centres in Overland Park, Kan. In a statement, the company said it would be bringing back jobs in different parts of its business including customer care. It did not say where the jobs would be. It is expected the jobs will go live by the end of the 2017 fiscal year.
Despite Mr Trump’s election pledge more jobs are moving out of the United States. Carrier and United Technologies are planning to move a 1000 jobs from Indiana to Mexico, and a Rexnord, a ball bearing factory have plans to move to Mexico as well.