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Amazon puts second headquarters plan on hold as cost-cutting continues

Amazon second headquarters in Virginia

Amazon second headquarters in Virginia

Amazon has paused construction of the second phase of its second headquarters in Virginia.

Charged Retail reports around 8,000 Amazon workers have already completed phase one of the Met Park camps, but construction of the second phase of the project has now been put on hold.

The second phase, known as PenPlace, was due to begin at some point in 2023.

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The campus comprises three office buildings and a 350-foot corkscrew-shaped tower - expected to be the architectural centerpiece of the new structure.

Amazon stressed the decision was not down to its plans to cut 18,000 corporate staff.

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

The project is costing Amazon $2.5 billion, and is expected to bring 25,000 new jobs to the region by 2030.

Amazon has also shelved more office block projects and some new staff on graduate schemes have also been told they have to wait before they can start work.

Amazon chose the city of Arlington as the location in 2018.

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The company said it remains committed to other public-use projects around the US due to finish early in 2025.

Schoettler added: “Since Met Park will have space to accommodate more than 14,000 employees, we’ve decided to shift the groundbreaking of PenPlace out a bit.

“Our second headquarters has always been a multiyear project, and we remain committed to Arlington, Virginia, and the greater Capital Region — which includes investing in affordable housing, funding computer science education in schools across the region, and supporting dozens of local non-profit[s].”

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