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.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

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.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.