Amazon postpones the construction of the second phase of its headquarters in Virginia

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The e-commerce giant announced in January that it was cutting 18,000 jobs

An Amazon logistic centerDarren StaplesAFP

Amazon has decided delay the start of construction on the second phase of its new headquarters in Arlington (Virginia, USA)as confirmed this Friday by the company, which in recent months has carried out a significant workforce adjustment.

“We are always evaluating space plans to ensure they fit our business needs and to create a great employee experience,” John Schoettler, the company’s head of real estate, said in a statement.

Amazon’s second headquarters, for which numerous US cities competed, will be added to the company’s headquarters in Seattle, Washington state, and should eventually house up to 25,000 employees.

The first phase of the project, known as Met Park, will open as planned next June and house more than 8,000 workers that the firm already has in Virginia and who will move to these new facilities, an Amazon source explained to EFE, who He stressed that the decision announced today 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 put on hold the start of the 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.

Today’s decision comes after Amazon announced last November that it was going to cut some 10,000 jobs, a figure that it expanded to just over 18,000 in January, after having significantly reinforced its workforce during the pandemic.

The e-commerce giant closed 2022 with a loss of 2,722 million dollars compared to the more than 33,000 million that it earned the previous year, consequence above all of his investment in the Rivian electric car company.

The technology company scored a charge of 12,700 million for the strong stock market decline suffered by Rivian and closed its first year in the red since 2014.

However, its annual net turnover continued to rise to $513.983 million, with higher sales volume in North America – its main source of income -, a decline internationally and notable growth in its cloud business, Amazon Web Services. (AWS).

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