New Apple Headquarters Goes Over Its By Budget By $2 Billion

New Apple Headquarters

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It appears that the construction of the new Apple headquarters is facing some budget issues. Reports have indicated that the 176-acre “spaceship” campus that is scheduled to be opened in 2015 has gone over its budget, by around $2 billion.

The late CEO of Apple, Steve Jobs made an appeal to the city council of Cupertino City in June 2011 as he showed the plan of the company in building a circular structure that encompasses 3.1 million square feet and will serve as the workplace of the 12,000 employees of the company. The employees are currently working in a number of buildings that the company rents all around the city.

The budget that Jobs set aside for the new Apple headquarters was just under $3 billion. However, it appears that the cost of building the Apple Campus has gone up to nearly $5 million. The current budget for the top secret edifice is higher than the cost of building the new World Trade Center complex in New York, which was at around $3.9 billion.

Prior to the death of Jobs, the late Apple CEO intended to lay the foundations in 2012 with the plan of moving in by 2015. However, the delay in the environmental impact report of the company pushed back the start of construction to 2014. This means the employees will start working in the new Apple headquarters no earlier than 2016.

The company has been trying to reduce the budget for the new Apple headquarters. It is working with Foster+ Partners to reduce the budget by $1 billion before they continued with the work. Sources have also indicated that a number of buildings will be torn down at the site by summer while excavation works will take around six months. Bids for the jobs will be submitted by subcontractors in the coming month.

Although the price tag appears huge for many people, $1 billion is nothing compared to the cash reserves of the company, which reaches around $137 billion. The company has also informed its neighbors about what to expect in the future. The company released a brochure indicating the transportation options that employees can use in order to reduce traffic.

The new Apple headquarters will also have its own fitness center, restaurant and other amenities that will encourage employees to stay inside until the end of their shift.