Amazon had earlier stated that the Virginia headquarters would create 25,000 jobs. Credit: Photo by Christian Wiediger / Unsplash

E-commerce major Amazon has paused construction works of its second headquarters, called HQ2, in Virginia, US, as it cuts down overall expenses amid the current economic meltdown, reported CNBC.

In a statement, Amazon real estate head John Schoettler said that the company is delaying the groundbreaking ceremony of PenPlace, which is the second phase of the larger northern Virginia campus.

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Schoettler added: “We’re always evaluating space plans to make sure they fit our business needs and to create a great experience for employees, and since Met Park will have space to accommodate more than 14,000 employees, we’ve decided to shift the groundbreaking of PenPlace (the second phase of HQ2) out a bit.”

Metropolitan Park, which is Phase I of the Virginia campus,  is anticipated to open in June and will have the capacity to accommodate 8,000 employees.

PenPlace features three 22-storey office buildings, over 100,000ft² retail space, and a 350ft-tall tower called The Helix.

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This project is larger than Metropolitan Park as it will feature two additional 22-storey tall office towers and a mixed-use location with shops, restaurants, and green space.

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Amazon had earlier stated that the Virginia headquarters would create 25,000 jobs.

In 2019, after facing criticism from local activists and city council leaders, Amazon dropped its plan to develop new New York headquarters.

In January this year, the e-commerce major announced its plan to lay off 18,000 employees from its corporate workforce after slashing several employees in November 2022.

Amazon clarified that the delay in constructing PenPlace does not imply any elimination in jobs, reported Reuters.