Amazon halts construction of its second headquarters in Virginia

Amazon has decided halt the start of construction on the second phase of its new headquarters in Arlington (Virginia, USA). “We are always evaluating space plans to ensure they fit our business needs and to create a great employee experience”has declared John Schoettler, Amazon’s real estate manager.

As he explained to EFE an Amazon source, the first phase of the project, known as met park, will open as planned next June and will house more than 8,000 workers that Amazon already has in Virginia and who will move to these new facilities. The same source has assured that “This decision does not imply any job cuts”.

Total, Met Park has the capacity to house about 14,000 employees, Therefore, for now, the company has decided to pause the start of construction of the second phase of the project, called PenPlace. The opening of a second Amazon headquarters was announced in 2018 and was initially going to be divided between Arlington and the New York borough of Queens, but in 2019 the company decided to cancel the part in the Big Apple amid local opposition.

job cuts

In early January, the company announced the dismissal of about 18,000 employees. Amazon it began laying off 10,000 employees in November, but ultimately the adjustment will be greater than expected. The layoffs have mostly affected the store divisions (Amazon Stores) and PXT, which is the company’s human resources area. The cuts amount to 6% of the workforce of approximately 300,000 people, and represent a quick turnaround for a club that recently doubled its base salary cap.

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amazon too closed 2022 with red numbers. The American company has been riding losses and closing with profits since about 2015 thanks to its business in the cloud. However, last year it recorded losses of 2,722 million dollars.

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