Amazon suspends construction second HQ amid layoffs
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According to Amazon real estate executive John Schoettler, Amazon will be suspending work on its "HQ2" building in Arlington, Virginia.
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The Amazon app icon is seen on a smartphone, Tuesday, Feb. 28, 2023, in Marple Township, Pa (AP Photo/Matt Slocum)
After layoffs and salary cutbacks for thousands of employees in recent months, Bloomberg reported that Amazon has halted construction of its second corporate headquarters in Virginia.
Citing Amazon real estate executive John Schoettler, Bloomberg reported that Amazon will be suspending work on its "HQ2" building in Arlington, Virginia.
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The decision to suspend construction follows Amazon's recent decrees to lay off more than 17,000 employees. Due to decreasing stock prices, US media claimed in February that salaries of Amazon employees will be subject to 15-50% reductions.
After doubling its shipping network and hiring hundreds of thousands of employees during the COVID-19 pandemic, Amazon now is aiming to decrease expenses after the general decrease in demand for online shopping with Covid mobility restrictions being generally lifted.
According to the report, construction on Amazon's HQ2 was approaching completion and is still anticipated to be finished as scheduled however no new start date has been provided.
The first phase of completion has been finalized however the larger second phase of development will be halted.
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The report also added that the suspension might cause problems for local developers, construction workers, and service employees who rely on Amazon's development in the region.
The site of the second phase of construction is reported to include 22-story office buildings, a corporate conference center, and an indoor garden totaling around 2.8 million square feet.
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In the same context, back in January, brand evaluation consultancies assessed that Amazon's stock value had plunged to $299.3 billion from $350.3 billion just over the past year as its rating fell to AAA from AAA+ per post-pandemic consumer evaluation.
However, despite the sharp decline in profits Brand Finance Global ranked Amazon as the as world's most valuable brand although it lost $51 billion in 2022.
