Amazon Pauses Construction Of Second Headquarters In Virginia

Amazon (AMZN) is pausing construction on its second headquarters in northern Virginia.

Amazon had in 2018 announced its plans to build a second headquarters in Virginia. However, According to CNN, John Schoettler, Amazon's real estate chief, said the company is pushing back the groundbreaking of the second phase of the new headquarters. The first phase is still under construction and is expected to open in June.

"We've decided to shift the groundbreaking of PenPlace (the second phase of HQ2) out a bit," Schoettler said in a statement. "Our second headquarters has always been a multi-year project, and we remain committed to Arlington, Virginia, and the greater Capital Region."

Schoettler added that Amazon has already hired more than 8,000 employees at the headquarters and the company is excited to welcome them to the first phase of the new campus, dubbed Met Park, this June.

The decision to delay the construction project comes as Amazon and other big tech companies have made big job cuts. In January, Amazon announced it plans to lay off more than 18,000 employees.

However, an Amazon spokesperson told CNN that the pause is not a result or indicative of role eliminations at the company. He also reaffirmed that Amazon's long-term intention and commitment regarding HQ2 remains unchanged, including the company's plans to bring 25,000 corporate and tech jobs to the new headquarters.

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