UT: Overstock.com to Invest $2.6M and Hire 333 for IT Jobs
18 Aug, 2014
The Governor’s Office of Economic Development (GOED) and Overstock.com announced the company will grow its employee base by bringing 333 additional jobs to Salt Lake County. These IT positions that in the past have been contracted out of state will be brought back to Utah over the next 10 years.
“Overstock.com’s decision to bring hundreds of IT jobs to Utah showcases the confidence the company has in Utah’s top-notch workforce,” said Governor Gary R. Herbert. “Utah is known as a software and IT hub thanks to the continued investment and growth of companies like Overstock.com.”
“Overstock.com has benefited enormously from being headquartered in Utah,” said company CEO Patrick Byrne. “The state’s strong economy and a workforce that is educated and tech-savvy have been key factors in our growing to a $1.5 billion company. We look forward to hiring many more qualified IT professionals in Utah as we continue to grow and invest in this state.”
Founded in 1999, Overstock.com is a public company and online retailer offering discount brand name, non-brand name and closeout merchandise, including furniture, home décor, bedding and bath housewares, jewelry, watches, apparel, designer accessories, electronics and computers, sporting goods and many other products. The company also sells hundreds of thousands of current run books, magazines, CDs, DVDs and video games. Overstock.com’s website offers customers an opportunity to shop for bargains conveniently, while offering suppliers an alternative sales channel.
Overstock.com has indicated that it will be creating 333 new jobs over the next 10 years. The total wages, including medical benefits, in aggregate are expected to be at least 200 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be approximately $300,843,588. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $11,406,215 over 10 years. The Overstock.com expansion has the potential to result in an expected capital investment of $2,650,645.
“Utah’s competitive tax structure, highly skilled workforce and unparalleled quality of life provide a premier foundation for success for quality companies such as Overstock.com,” said Jeff Edwards, president and CEO of Economic Development Corporation of Utah.
As part of a contract with Overstock.com, the GOED Board of Directors has approved up to a maximum tax credit of $2,281,243 in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 20 percent of the new state taxes Overstock.com will pay over the 10-year life of the agreement. Each year as Overstock.com meets the criteria in its contract with the state, it will earn a portion of the total tax credit incentive.
Overstock.com actively seeks to hire veterans through its support for and regular affiliation with the Wounded Warrior Program. The company also utilizes placement services that specialize in transitioning military personnel. Overstock.com has a strict non-discrimination policy as it pertains to hiring employees, and thus, has a focus on the recruitment and hiring of persons with disabilities. Utahns interested in applying for Overstock.com positions should go to http://www.Overstock.com/careers.
About the Utah Governor’s Office of Economic Development (GOED) www.business.utah.gov
The Governor’s Office of Economic Development (GOED) charter is based on Governor Gary Herbert’s commitment to economic development statewide. Utah’s economic development vision is that Utah will lead the nation as the best performing economy and be recognized as a premier global business destination. The mandate for this office is to provide rich business resources for the creation, growth and recruitment of companies to Utah and to increase tourism and film production in the state. GOED accomplishes this mission through the administration of programs that are based around targeted industries or “economic clusters” that demonstrate the best potential for development. GOED utilizes state resources and private sector contracts to fulfill its mission. For more information please contact: Michael Sullivan, 801-538-8811 or firstname.lastname@example.org
Overstock.com (NASDAQ: OSTK) is a discount online shopping retailer based in Salt Lake City, Utah that sells a broad range of products including furniture, rugs, bedding, electronics, clothing, jewelry and cars. Worldstock.com, a fair trade department dedicated to selling artisan-crafted products from around the world offers additional unique items. Main Street Revolution supports small businesses across the United States by providing them a national customer base. The Nielsen State of the Media: Consumer Usage Report placed Overstock.com among the top five most visited mass merchandiser websites in 2011. The NRF Foundation/American Express 2011 Customer Choice Awards ranked Overstock.com #4 in customer service among all U.S. retailers. Overstock.com sells internationally under the name O.co. Overstock Shopping (http://www.Overstock.com and http://www.o.co) regularly posts information about the company and other related matters under Investor Relations on its website.