May 23, 2024

Amazon has suspended construction of its second headquarters in Virginia, a move as the company tries to cut costs amid slowing growth and tighter margins.

On Friday, John Schoettler, Amazon’s head of real estate, confirmed the delay. “We are constantly evaluating space programs to ensure they fit our business needs,” he said in a statement.

The suspension will affect PenPlace, which is building Phase 2 in Virginia. Construction is nearing completion on Amazon’s Met Park campus, which is scheduled to open to employees in June.Construction delays are caused by Bloomberg News.

Last month, company CEO Andy Jassy written in a letter most to employees Beginning May 1, staff will return to the office three days a week.

Mr Jassy has spent the past year pushing the company to cut costs. Amazon announced in November that it would cut 10,000 jobs, only to expand the number of layoffs in January to 18,000.

In late 2018, Amazon announced it would open secondary headquarters in Queens and Arlington, Virginia. At the time, the company said the developments would require $5 billion in construction and other investments. company explain It will bring more than 25,000 jobs to the Arlington, Virginia area.

In early 2019, Amazon canceled plans to expand its corporate campus in Long Island City, Queens, after facing backlash from activists, lawmakers and union leaders.

This is breaking news. Check for updates.

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