Plans for second HQ for Amazon put on hold indefinitely

Amazon needs space for all its staff/Shutterstock Images

In 2018 many cities in the USA were keen to be chosen as the site for global giant Amazon’s second headquarters. Eventually after a year of competition, Amazon chose New York City, but this was met with fierce opposition.

According to a new Bloomberg report, $3 billion in tax incentives were in the offing in exchange for Queens as the location, but the facility faced a strong backlash from AOC (Democrat Alexandria Ocasio-Cortez) and local politicians over the deal.

Before building began in Queens, Arlington, Virginia was chosen instead. The first portion of completion of the site, will be ready to bring 8,000 workers in the office by June. However, the suspension of the completion of the facility will create problems for local developers, construction company employees, and service workers.

“When I opposed this Amazon project coming to New York [because] it was a scam of public funds, the whole power establishment came after us,” tweeted(Opens in a new tab) New York Congresswoman Alexandria Ocasio-Cortez on Friday after Amazon announced it was suspending construction of its second headquarters in Virginia.

The decision to suspend comes after the layoff of 18,000 people losing their job in recent months. The Bloomberg report also mentions the move to remote work over the past few years has led the company to reassess its office-related needs as well.

Amazon said it was still committed to the $2.5bn project that will by 2030 bring 25,000 workers to the region just outside Washington, DC.

“We’re always evaluating space plans to make sure they fit our business needs and to create a great experience for employees,” said John Schoettler, Amazon’s head of real estate, in a statement on Friday.

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