Media and telecoms giant AT&T is to reward its 200,000 workforce with a special Christmas bonus of $1,000 (£750) – and it’s all thanks to US President Donald Trump.
The firm will pay the bonuses as a result of US tax reforms being cleared, which will see some corporate tax rates almost in halved.
Trump’s fiscal overhaul is widely expected to boost corporate earnings. The US commander in chief referred to AT&T’s move in a speech celebrating the tax cuts.
With bottom lines set to swell, AT&T is not the only firm promising good news for staff. Media group Comcast said it would also hand out $1,000 to 100,000 staff and invest $50bn in better infrastructure over the next five years. And aircraft manufacturer Boeing is to invest an additional $300m as a result of the changes.
AT&T boss Randall Stephenson labelled Trump’s reforms a “monumental plan”.
“This tax reform will drive economic growth and create good-paying jobs,” he said.
The bonuses will go to blue-collar unionised non-managers.
The award comes as AT&T prepares to do battle with the US federal government over its proposed takeover of Time Warner. The Department of Justice last month filed a legal challenge to block the $85bn deal.
The top rate of US corporate taxation will fall from 34 per cent to 21 per cent under Trump’s reforms.