Amazon has paused construction of PenPlace, its second headquarters in Virginia

Amazon Confirmed that he put a stop In the construction of its second headquarters in the state of Virginiain United State. It is the building that was baptized as pinless which is now awaiting the resumption of its second phase of development.

The announcement of the head of the real estate department of the company, John Schwettlerwas then given The largest round of layoffs in its history And changes around the way we work remotely. However, Schwettler commented that the decision was in line with the company’s needs and not with these departures.

“We are always evaluating space plans to ensure they fit the needs of our business and to create a great experience for employees,” He commented before adding that instead of PenPlace, they will focus their efforts on other campuses.

“since dead park It will accommodate more than 14,000 employees. We’ve decided to delay the launch of PenPlace a little bit.” Amazon recently hired 8000 workers They will start their jobs on campus in June, when the opening takes place.

For his part, said the speaker Zack Goldsteinstated that work is expected to progress before work in Virginia within the year but did not provide details on the final timeline for this second phase.

Schwettler also noted that the company is continuing “Committed to Arlington” and the local area, besides the city New Yorkto house its new headquarters known as HQ2several years ago.

At that time, more than 230 municipalities I took part in this proposal but at first it was the Big Apple State that won the contest thanks to its almost promise $3,000 million in tax credits and subsidies, among other advantages. but, Opposition from local politicians, union leaders, and progressive activists led to the plans being scrapped.

Virginia It was chosen, then, to house this project, though there Less direct incentives and more investment promises In the regional workforce—particularly on the Virginia Tech campus that’s being built a mile or so from the Amazon campus under construction in Crystal City.

In any case, the state promised to contribute $22,000 for each new job in the company for the average salary of these new employees $150,000 per year. This feature represents a total 550 million dollarsand reflect on the planned scheme to create 25,000 jobs.

Later, in February 2021, Amazon announced an amazing build Helix tower 350 feet as part of Phase Two of Arlington’s redevelopment plans. Promised to boycott Company A Lower your hotel taxesConsidering that the occupation of the sector will increase significantly once the work on the campus is completed.

This stimulus was, in the beginning, before $23 million But it will be adjusted according to the total square meters that the offices will occupy.

These towers were to house more than 25,000 employees, but then again, so was the project slow. Goldsztejn mentioned it Plans have not changed and this is in no way related to the latest downsizing.

Susan ClarkA spokesman for the Virginia Economic Development Association commented that the state authorities They do not doubt that the company will fulfill its obligations The total of 8,000 employees in the new headquarters is already 3,000 more than expected.

Also, no stimulus money has been disbursed yet. The company is expected to submit the first payment request on the 1st of next April, and it will depend on job creation between 2019 and 2022. Thus, Amazon will not receive its first payment of support until after July 1, 2026.

Democrat Don Baer, ​​who represents the district, issued a statement calling on the company to “promptly inform leadership and stakeholders of any major new changes to this project, which remains very important to the district.”

For his part, the Arlington County Chief said, Christian Dorseystated that the pause in the works is not “disappointing” because the authorities expected – initially – that the work would be completed in 2035 while the company stated that it estimated the end of 2025. He also confirmed that it from Amazon was also aware of the decision before it was made public. Although no reasons were given.

“Amazon remains very committed – as we understand it – to carry out all of its plans and commitments in the foreseeable term when they closed the agreement to come here.”Dorsey said, adding: They are really trying to stop and consciously think about this. and make decisions that not only make sense in light of current circumstances, but also in light of projected future conditions.”

Over the LayoffsThis is part of the file wider scale which is included in Reduce costs which happens in the middle worst sales and the Fear of potential recession. Meta and Salesforce, among other tech companies that have launched mass hiring in recent years, have had to take similar steps.

Added to this workforce reduction is Amazon’s request for its employees to resume their work Face-to-face work scheme. Last month, the company’s CEO, Andy Jassy, ​​announced that the company’s employees would begin returning to offices at least three days a week, replacing the current scheme that allowed leaders to determine how teams worked.

The change will take effect on May 1, but has already prompted complaints from employees who prefer working remotely.

(with information from the AP)

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