Amazon is pausing construction of its second headquarters in Virginia following the biggest round of layoffs in the company’s history and shifting landscape of remote work.
The Seattle-based company is delaying the beginning of construction of PenPlace, the second phase of its headquarters development in northern Virginia, Amazon’s real estate chief John Schoettler said in a statement. He said the company has already hired more than 8,000 employees and will welcome them to the Met Park campus, the first phase of development, when it opens this June.
In February 2021, Amazon said it would build an eye-catching, 350-foot Helix tower to anchor the second phase of its redevelopment plans in Arlington. The new office towers were expected to Amid the job cuts, Amazon has urged its employees to come back to the office. Last month, Amazon CEO Andy Jassy said the company would require corporate employees to return to the office at least three days a week, a shift from from the prior policy that allowed leaders to make the call on how their teams worked. The change, which will be effective on May 1, has ignited some pushback from employees who say they prefer to work remotely.
Still, there were significant direct incentives. The state promised $22,000 for each new Amazon job on the condition that the average worker salary for those new jobs is $150,000, annually. Those incentives were about $550 million for 25,000 projected jobs. She said no incentive money has been paid out yet to Amazon. The company is scheduled to submit its first application for payment on April 1, which will be based on the job creation from 2019 through 2022. Amazon would then receive its first grant payment on or after July 1, 2026.
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