Amazon halts development on its second headquarters in Virginia

Amazon Pauses Construction on Second HQ in Virginia

Amazon has put on hold the construction of its second headquarters in Arlington, Virginia, to reduce costs. The new headquarters was planned to house 25,000 employees and was to be built in two phases: Met Park and PenPlace. However, Amazon has postponed the construction of PenPlace, which consists of three office buildings and a 350-foot corkscrew-shaped tower known as the “Helix.”

Delay Not Related to Job Cuts

The pause in construction is not related to the job cuts announced earlier this year. Amazon is always evaluating space plans to ensure they fit its business needs and create a great experience for its employees. Amazon’s head of real estate, John Schoettler, reaffirmed the company’s commitment to the $2.5 billion project.

Amazon’s Cost-Cutting Efforts

Amazon’s decision to pause construction on its second headquarters symbolizes the company’s effort to tap the brakes on years of heavy investment and expansion. The e-commerce giant has also scrapped or delayed other office plans in the US.

Bidding Frenzy in 2018

Amazon’s decision to build a second big office campus outside Seattle sparked a bidding frenzy in 2018. After drawing up a shortlist of 20 cities, Amazon’s initial decision to split its proposal between Arlington and a neighbourhood in the New York City borough of Queens drew heavy criticism and accusations.

Delay Will Impact Region’s Economic Growth

The delay in the construction of the second headquarters will undoubtedly have an impact on the region, as it was expected to bring significant economic benefits to the area. However, Amazon has committed to several public-use projects that were due to be finished by early 2025.

Amazon’s Commitment to the Project and the Community

Schoettler added that since Met Park will have space to accommodate more than 14,000 employees, the groundbreaking of PenPlace will be shifted out a bit. The company also reiterated its commitment to investing in affordable housing, funding computer science education in schools across the region, and supporting dozens of local non-profits.