Amazon pauses construction on its second headquarters in Virginia

Amazon has paused development on its second headquarters in Arlington, Virginia, within the newest cost-cutting effort on the ecommerce and cloud large.

Amazon has about 8,000 workers primarily based on the website in Arlington, working in an already-completed section 1 of the brand new campus known as Met Park. Development on a second section, often known as PenPlace, had been as a result of start this 12 months. That website contains three workplace buildings and the “Helix”, a 350-foot corkscrew-shaped tower that was as a result of be the architectural centrepiece of the brand new workplace hub — its largest exterior Amazon’s dwelling metropolis of Seattle.

The corporate stated the pause was not associated to latest job cuts introduced earlier this 12 months, wherein it deliberate to dismiss 18,000 folks from its company workforce, following years of fast hiring.

“We’re all the time evaluating house plans to ensure they match our enterprise wants and to create a fantastic expertise for workers,” stated John Schoettler, Amazon’s head of actual property, in a press release on Friday.

Amazon stated it was nonetheless dedicated to the $2.5bn undertaking, which it expects will carry 25,000 employees to the area simply exterior Washington DC by 2030.

The delay to its so-called HQ2, first reported by Bloomberg, is symbolic of how Amazon has appeared to faucet the brakes on years of heavy funding and enlargement. It has additionally scrapped or delayed different workplace plans within the US, and informed a few of these as a result of begin on graduate schemes they would wish to attend.

Amazon’s resolution to construct a second large workplace campus exterior Seattle sparked a bidding frenzy in 2018, as a number of cities clamoured to be thought of as the placement for the tens of 1000’s of high-paying jobs the ecommerce group had promised to create. Stonecrest, a metropolis in Georgia, supplied to alter its title to “Amazon” if it was chosen.

After drawing up a shortlist of 20 cities, Amazon’s preliminary resolution to separate its proposal between Arlington and a neighbourhood within the New York Metropolis borough of Queens drew heavy criticism and accusations the corporate had used the bidding course of as a manner of pushing for better tax breaks and different incentives.

Amazon ended up abandoning its New York plans after native opposition led by Democratic congresswomen Alexandria Ocasio-Cortez, however stated it might press forward with plans in Arlington.

No date has been given for when development will resume. Nonetheless, the corporate has dedicated to quite a lot of public-use initiatives that have been as a result of be completed by early 2025.

“Since Met Park may have house to accommodate greater than 14,000 workers, we’ve determined to shift the groundbreaking of PenPlace out a bit,” Schoettler added.

“Our second headquarters has all the time been a multiyear undertaking, and we stay dedicated to Arlington, Virginia, and the better Capital Area — which incorporates investing in reasonably priced housing, funding laptop science schooling in colleges throughout the area, and supporting dozens of native non-profit[s].”

Back To Top