AP NEWS

Amazon pauses construction on 2nd headquarters in Virginia

Mar 3, 2023, 10:33 AM | Updated: Sep 30, 2024, 10:16 am

Amazon is pausing construction of its second headquarters in Virginia following the 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.

Amazon employees return to the office beginning May 1

“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.

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.

Amazon leaving Seattle’s West 8th tower after more than a decade

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.

 

tacoma hiring freeze...

Jake Skorheim and Spike O'Neill Show

‘Tacoma, be better’: Spike calls out the city after it ranks 7th worst for retirement in new study

A new study reveals Tacoma's low ranking in retirement, calling for improvements to attract retirees and enhance quality of life.

1 hour ago

Seattle snohomish nba team...

Gee Scott and Ursula Reutin Show

‘Can they draw enough people?’: KIRO hosts debate proposal to put Seattle’s NBA team in Snohomish County

Can Snohomish County support an NBA team? Explore the debate on Seattle's potential expansion and its economic impact.

1 hour ago

seattle commute traffic...

Gee Scott and Ursula Reutin Show

‘People ain’t working’: Gee’s warning about why Seattle’s commute keeps improving, what it’s costing downtown

Gee and Ursula discuss how Seattle's average one-way commute improved by 2.5 minutes, ranking among the top U.S. cities for commute time.

1 hour ago

Sound Transit at westlake station fare gate...

John Curley Show

‘They fail, or they move the goalpost’: Curley questions Sound Transit’s $87M fare gate math

John Curley questions Sound Transit's $87M fare gate initiative to reduce fare evasion at light rail stations.

1 hour ago

City Councillor Renaldo Agostino looks at the Detroit skyline across the Detroit River Monday, Aug....

Associated Press

US tourism groups want to win Canadian visitors back. A testy trade war isn’t helping

LAS VEGAS (AP) — Appeals from American tourism organizations seemed to be everywhere Josh Loewen looked over the last year. Billboards and banners proclaimed a state or city’s love for Canada. Online and social media ads offered special deals for travelers from north of the border. As a Vancouver resident and marketing executive himself, Loewen […]

1 hour ago

In this photo taken with a smartphone, Brent Williams, who suffers from the tick bite allergy known...

Associated Press

A Kentucky man with a meat allergy was craving a burger. So he got into ostrich farming

DANVILLE, Ky. (AP) — When a friend approached Brent Williams four years ago with a business proposition to start an ostrich farm, he was more than intrigued — he had a personal motivation as someone who developed a life-threatening allergy to red meat, triggered by tick bites. The problem, known as alpha-gal syndrome, was first […]

2 hours ago

Amazon pauses construction on 2nd headquarters in Virginia