Amazon is halting construction on its second headquarters in northern Virginia, the United States, the company confirmed in a statement to CNN this Friday (3).
John Schoettler, Amazon’s director of real estate, said the company is delaying the start of the second phase of the new headquarters. The first phase is still under construction and should open in June.
“We decided to change the innovation of PenPlace (the second phase of HQ2) a little bit,” Schoettler said in a statement. “Our second headquarters has always been a multi-year project, and we remain committed to Arlington, Virginia and the capital metro area.”
Schoettler added that Amazon has already hired more than 8,000 employees at headquarters and that the company is excited to welcome them to the first phase of the new campus, dubbed Met Park, in June.
The company’s search for a second headquarters began in 2017, sparking fierce competition as local officials across the country vie for the e-commerce giant to bring jobs and other benefits to their communities.
Some 238 communities submitted bids in 2017 to host Amazon’s second headquarters, with some offering big tax breaks.
Amazon ended up choosing New York and Virginia for its new headquarters after a year-long search, but later scrapped its plans for New York after facing backlash from community members.
The company’s decision to halt construction comes just two months after Amazon CEO Andy Jassy confirmed the company would eliminate more than 18,000 jobs amid a broader cost-cutting effort after the company quickly hired in the early years of the pandemic.
Zach Goldsztejn, an Amazon spokesman, told CNN that the break is not the result of or indicative of eliminations of functions in the company.
Goldsztejn said Amazon’s long-term intent and commitment to HQ2 remains unchanged, including the company’s plans to bring 25,000 corporate and technology jobs to the new headquarters.
News of the construction pause was first reported by Bloomberg on Friday.
Amazon’s move comes as a growing number of tech companies are rethinking their presence and real estate investments, amid a slowdown in the tech industry driven by a shift in pandemic demand and broader economic uncertainty.
Meta, Microsoft, Salesforce and Facebook parent Snap have closed offices or announced plans to cut back on real estate in recent months.
The effect of these setbacks can already be felt across the country, from Atlanta, where Microsoft has stalled development on a new campus, to San Francisco, where some local companies say they are grappling with the effects of remote work and the closure of several corporate offices. technology.
Some community members said the technological retreat feels like “broken promises” and raised concerns about the possible consequences of these changes on their neighborhoods.
In his statement, Schoettler said Amazon remains committed to Arlington, including “investing in affordable housing, funding computer science education in schools across the region, and supporting dozens of local nonprofits.”
“We appreciate the support of all our partners and neighbors and look forward to continuing to work together for years to come,” he said.
Source: CNN Brasil
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