Amazon freezes building of second headquarters in Virginia amid job cuts

Amazon is pausing building on its second headquarters in Arlington, VA. The corporate tied the choice to “a reassessment of workplace must account for distant work,” though the transfer got here months after the retailer laid off round 18,000 staff.

The net retailer confirmed the transfer to Bloomberg whereas insisting it’s nonetheless dedicated to the second headquarters (HQ2) within the Washington, DC suburb, the place it has dedicated to hiring 25,000 staff and spending $2.5 billion. Amazon has already employed greater than 8,000 folks whereas finishing the primary section of the brand new campus, together with two towers within the 2.1-million-square-foot Metropolitan Park. The suspension impacts improvement on PenPlace, a larger area across the street the place it plans to construct three 22-story workplace towers, a 350-ft company convention middle and an indoor backyard. As well as, the delay might have a ripple impact on the world as native builders, building staff and different companies have set plans in movement based mostly on Amazon’s timeline.

“We’re all the time evaluating house plans to ensure they match our enterprise wants and to create an amazing expertise for workers,” mentioned Amazon actual property chief John Schoettler. “And since Met Park can have house to accommodate greater than 14,000 staff, we’ve determined to shift the groundbreaking of PenPlace out a bit.” 

Amazon’s county-approved plans require it to fulfill building and allowing objectives by April 2025 except it will get an official extension.

The corporate settled on the Arlington places of work after its hyped nationwide search for a second headquarters in 2017. Critics panned the transfer as a stunt to start out a bidding warfare over who might provide the mega-corporation the juiciest taxpayer-funded incentives. Amazon initially settled on a split between Queens, NY and Northern Virginia however withdrew from Queens after going through opposition from native politicians and officers, together with Rep. Alexandria Ocasio-Cortez (D-NY), who objected to the almost $3 billion in monetary kickbacks the corporate was set to obtain. Round 10 months after Amazon withdrew its New York plans, the corporate introduced it might nonetheless build new offices within the Hudson Yards neighborhood of Manhattan’s West Facet.

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