Amazon is pausing construction for its second headquarters in Virginia, near Washington. This decision comes after the company's deepest layoffs and reassessment of return to the office from remote work.
Halting PenPlace Development
Amazon halted the construction of a massive corporate real-estate headquarters in Arlington, Virginia, called PenPlace, the company's second headquarters. Based on a report from Associated Press, halting the development follows the biggest round of layoffs in Amazon's history and the shifting plans around remote work.
Since there will be a delay in the construction, Amazon's full arrival at its biggest real estate could create setbacks for local developers, along with construction and service workers. Amazon planned to spend $2.5 billion and hire some 25,000 workers by 2030.
Real Estate Chief John Schoettler stated, "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 out a bit."
The first phase of the campus is already nearing conclusion and will be finished according to the original plan. Wall Street Journal reported that Amazon is expecting to start moving its employees to the newly completed office towers called Metropolitan Park. This is near the Pentagon and Ronald Reagan Washington National Airport.
He added that the company already hired more than 8,000 employees and will be working in Metropolitan Park once it opens this year in June. Amazon remains committed to Arlington and the local region that the company has chosen for its new headquarters.
Supposed Plans
More than 230 municipalities competed to house this project. While New York won this by promising $3 billion in tax breaks and grants along with other benefits, opposition from local politicians, labor leaders, and progressive activists made Amazon scrap its plans.
Bloomberg reported that Arlington officials granted the 2.8 million project, its most important approval in April. This delay also affects a larger phase for Amazon, as it calls for three 22-floor office towers and 350-feet Helix, a corporate conference center, and an indoor garden to echo the Spheres.
Amazon and JBG Smith Properties had been discussing modifying the plans for PenPlace to speed construction to some of its elements and meet commitments that the company made to provide community benefits. This includes high school geared toward adults and building a public plaza, bike roads, and retail space.
Due to these delays, Amazon's supposed plans will meet construction and permitting milestones by April 2025. Arlington County Board Chair Christian Dorsey stated that during his talk with Amazon representatives, he was not offered a new construction time but ensured that the company would proceed this year on the second phase of HQ2.
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