Current:Home > StocksAmazon pauses construction in Virginia on its second headquarters -ValueCore
Amazon pauses construction in Virginia on its second headquarters
View
Date:2025-04-14 12:04:19
NEW YORK — Amazon is pausing construction of its second headquarters in Virginia following the biggest round of layoffs in the company's history and shifting landscape of remote work.
The Seattle-based company is delaying the beginning of construction of PenPlace, the second phase of its headquarters development in Northern Virginia, said John Schoettler, Amazon's real estate chief, in a statement. He said the company has already hired more than 8,000 employees and will welcome them to the Met Park campus, the first phase of development, when it opens this June.
"We're always evaluating space plans to make sure they fit our business needs and to create a great experience for employees, and since Met Park will have space to accommodate more than 14,000 employees, we've decided to shift the groundbreaking of PenPlace (the second phase of HQ2) out a bit," Schoettler said.
He also emphasized the company remains "committed to Arlington" and the local region, which Amazon picked - along with New York City - to be the site of its new headquarters several years ago. More than 230 municipalities had initially competed to house the projects. New York won the competition by promising nearly $3 billion in tax breaks and grants, among other benefits, but opposition from local politicians, labor leaders and progressive activists led Amazon to scrap its plans there.
In February 2021, Amazon said it would build an eye-catching, 350-foot Helix tower to anchor the second phase of its redevelopment plans in Arlington. The new office towers were expected to welcome more than 25,000 workers when complete. Amazon spokesperson Zach Goldsztejn said those plans haven't changed and the construction pause is not a result - or indicative of - the company's latest job cuts, which affected 18,000 corporate employees.
Tech companies have been cutting jobs
The job cuts were part of a broader cost-cutting move to trim down its growing workforce amid more sluggish sales and fears of a potential recession. Meta, Salesforce and other tech companies — many of which had gone on hiring binges in the past few years — have also been trimming their workforce.
Amid the job cuts, Amazon has urged its employees to come back to the office. Last month, Amazon CEO Andy Jassy said the company would require corporate employees to return to the office at least three days a week, a shift from from the prior policy that allowed leaders to make the call on how their teams worked. The change, which will be effectively on May 1, has ignited some pushback from employees who say they prefer to work remotely.
Goldsztejn said the company is expecting to move forward with what he called pre-construction work on the construction in Virginia later this year, including applying for permits. He said final timing for the second phase of the project is still being determined. The company had previously said it planned to complete the project by 2025.
veryGood! (1686)
Related
- Realtor group picks top 10 housing hot spots for 2025: Did your city make the list?
- How a small town in Kansas found itself at the center of abortion’s national moment
- 2024 Emmys: See Meryl Streep and Martin Short Continue to Fuel Dating Rumors
- Perry Farrell's Wife Defends Jane's Addiction Singer After His Onstage Altercation With Dave Navarro
- New Mexico governor seeks funding to recycle fracking water, expand preschool, treat mental health
- 2024 Emmys: Joshua Jackson Gives Sweet Shoutout to Beautiful Daughter Juno
- Get 50% Off Jennifer Aniston's LolaVie Detangler, Fenty Beauty by Rihanna Powder & $10.50 Ulta Deals
- Emmy Moments: Hosts gently mock ‘The Bear,’ while TV villains and ‘Saturday Night Live’ celebrated
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- Costly drop mars Giants rookie WR Malik Nabers' otherwise sterling day
Ranking
- 'No Good Deed': Who's the killer in the Netflix comedy? And will there be a Season 2?
- Chain gang member 'alert and responsive' after collapsing during Ravens vs. Raiders game
- 4 wounded at Brooklyn train station when officers shoot man wielding knife
- Mike Tyson says he's training hard for Jake Paul fight: 'It's hard to walk right now'
- North Carolina justices rule for restaurants in COVID
- Detroit police chief after Sunday shootings: 'Tailgating, drinking and guns, they don't mix'
- Emmys 2024: Rita Ora and Eiza González Have Fashion Mishap With Twinning Red Carpet Looks
- Who plays on Sunday Night Football? Breaking down Week 2 matchup
Recommendation
Moving abroad can be expensive: These 5 countries will 'pay' you to move there
2024 Emmy Awards: Here Are All the Candid Moments You Missed on TV
Inside Benny Blanco and Selena Gomez’s PDA-Filled Emmys Date Night
What did the Texans trade for Stefon Diggs? Revisiting Houston's deal for former Bills WR
Have Dry, Sensitive Skin? You Need To Add These Gentle Skincare Products to Your Routine
'The Life of Chuck' wins Toronto Film Festival audience award. Is Oscar next?
2024 Emmys: Christine Baranski and Daughter Lily Cowles Enjoy Rare Red Carpet Moment Together
2024 Emmys: Saoirse Ronan and Jack Lowden Make Red Carpet Debut as Married Couple