Post-layoffs Amazon pauses 2nd HQ construction
new york –
Amazon has paused construction on its second headquarters in Virginia following the largest job cuts in the company’s history and changes to remote work.
The Seattle-based company is delaying the start of construction on PenPlace, the second phase of its northern Virginia headquarters development, John Schoettler, Amazon’s head of real estate, said in a statement. He said the company already employs more than 8,000 people and will welcome them to the Met Park campus, the first phase of development that will open in June this year.
“We are constantly evaluating our space plans to ensure they meet our business needs and provide a great experience for our employees. We decided to change the PenPlace breakthrough (the second phase of HQ2) to come out a little bit,” said Schoettler.
He also emphasized the company’s continued “commitment to Arlington,” highlighting the local neighborhood Amazon chose several years ago for its new headquarters location, along with New York City. were competing to house the project. New York State won the race by promising about $3 billion in tax cuts, subsidies and other benefits, but opposition from local politicians, labor leaders and progressive activists forced Amazon to abandon its plans there. has been discarded.
In February 2021, Amazon announced it would anchor the second phase of its Arlington redevelopment plan with the construction of the striking 350-foot Helix Tower. The new office tower was expected to have more than 25,000 employees when completed. Amazon spokeswoman Zach Goldsztejn said those plans have not changed, and the construction moratorium is a result of the company’s latest job cuts, which affected 18,000 company employees. I said nothing.
The job cuts were part of a broader cost-cutting move to cut a growing workforce amid sluggish sales and fears of a potential recession.Meta, Salesforce and Other Technologies Many companies, which have been hiring heavily in the last few years, are cutting staff.
Amid the job cuts, Amazon has urged employees to return to the office. Last month, Amazon CEO Andy Jassy said company employees will require him to be back in the office at least three days a week. The change, which goes into effect May 1, has sparked a backlash from employees who want to work remotely.
Goldsztejn said the company expects to move forward with what it calls pre-construction work in Virginia later this year, including applying for permits. He said the final timing for the second phase of the project is yet to be determined. The company has previously said it plans to complete the project by 2025.