Amazon is pausing construction of its second headquarters, dubbed HQ2, in Virginia, the company confirmed to CNBC on Friday.
John Schoettler, Amazon’s real estate head, said in a statement the company is pushing out the groundbreaking of PenPlace, the second phase of the sprawling northern Virginia campus. The first phase of the campus, known as Metropolitan Park, is expected to open on time this June and will be occupied by 8,000 employees.
The move comes as Amazon CEO Andy Jassy has taken steps to curtail expenses across the company in the face of slowing revenue and a gloomy economic outlook. That’s led the company to announce the largest layoffs in its history, totaling more than 18,000 employees. Amazon is also reevaluating its real estate portfolio and sunsetting some projects.
“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 in the statement. “Our second headquarters has always been a multi-year project, and we remain committed to Arlington, Virginia, and the greater Capital Region.”
Read more here: https://www.cnbc.com/2023/03/03/amazon-pauses-construction-of-second-headquarters-in-virginia.html
