Amazon freezes construction of new headquarters near Washington and continues with cuts

The Amazon group has decided to suspend construction of the second part of the new gigantic headquarters nearby in Arlington, Virginia, USA. The first part of the project is in its final stages and will be completed as scheduled. The first transfers of employees should begin in June. The second lot is instead frozen as confirmed by John Schoettler, Amazon’s real estate chief. The project, with a total value of 2.5 billion dollars, it was launched in 2017 and envisaged a complex capable of hosting 50 thousand employees. Several US cities had been put into competition by the group to obtain the most favorable conditions and the most conspicuous incentives for the choice of the area. Virginia government agencies have granted Amazon tax breaks for 800 million dollars and infrastructure improvements near the new headquarters.

Amazon increased its headcount during the pandemic when i lockdown have favored a greater use of online purchases. However, with the return to normal, demand has decreased and the company has announced the dismissal of over 18,000 workers (out of a workforce of over one million). The greater use of home working and part-time work has led the group to re-evaluate real estate projects. Last month, the CEO Andy Jassy said the company will require most employees to start spending a minimum of three days a week in the office.

Leave a Comment