Amazon is halting the development of a second corporate headquarters in the US state of Virginia following layoffs and pay cuts for thousands of workers in recent months, Bloomberg reported on Friday
WASHINGTON (Pakistan Point News / Sputnik - 03rd March, 2023) Amazon is halting the development of a second corporate headquarters in the US state of Virginia following layoffs and pay cuts for thousands of workers in recent months, Bloomberg reported on Friday.
Amazon is suspending construction of its "HQ2" facility in Arlington, Virginia, the report said, citing Amazon real estate chief John Schoettler.
The decision comes following Amazon's decision to lay off more than 17,000 employees in recent months. IN February, US media reported that Amazon employees will be paid 15-50% less than expected due to falling stock prices.
Amazon is seeking to cut costs as customers return to in-person shopping, after the online retailer doubled its logistics network and hired hundreds of thousands of workers during the COVID-19 pandemic.
Construction of Amazon's HQ2 campus is nearing the end of its first stage, and will be finished and occupied as planned, the report said.
However, the larger second phase of development at a site across the street has been suspended. The second phase included construction of three, 22-story office buildings, a corporate conference center and indoor garden, totaling approximately 2.8 million square feet, the report said.
Arlington officials granted approval for the project in April, the report said, adding that Amazon remains committed to the city. A new start date has not been specified, the report added.
The delay could pose challenges to local developers, construction and service workers relying on Amazon's expansion in the area, according to the report.
