Amazon has paused construction of its new headquarters in the Washington, D.C., area, a notable retreat as the retail giant looks to cut costs and lay off workers in response to a more uncertain outlook.
John Schoettler, the Amazon executive overseeing the company's real estate decisions, confirmed to Bloomberg that the company has halted projects to expand its soon-to-be-finished corporate headquarters. The company will move forward as planned to open Metropolitan Park, its new 2.1 million square foot office near the Pentagon, in June. But all other projects and expansions are postponed.
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The pause will delay the construction of three 22-story office towers and the futuristic 350-foot-tall Helix corporate conference center, which were part of Phase Two of Amazon's expansion efforts.
The company had intended to start digging foundations for the new facilities, but Schoettler said this had been delayed and that a new start date had not been set.
"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 nonprofits," Schoettler said in an email statement. "We appreciate the support of all our partners and neighbors and look forward to continuing to work together in the years ahead."
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Amazon announced plans to construct a second headquarters in the DC area in 2017. The facility was meant to eventually house 50,000 employees and provide billions in funding for local workers. The project received multiple bids from states, but the company settled on setting up in Virginia.
Amazon has moved to cut more than 18,000 workers since November 2022 to save costs after a massive expansion during the pandemic. It also slowed the addition of warehouses and eliminated other programs, such as its telehealth division and philanthropic service AmazonSmile. The company also delayed construction at several other sites. These sites include Bellevue, Washington, and Nashville, Tennessee.