Amazon has paused construction on its second headquarters in Virginia, a move that comes as the company tries to cut costs amid slower growth and tighter profit margins.
The delay was confirmed on Friday by Amazon’s real estate chief, John Schoettler. “We’re always evaluating space plans to make sure they fit our business needs,” he said in a statement.
The pause will affect PenPlace, the second stage of the construction in Virginia. Construction on Amazon’s Met Park campus is nearing completion and is scheduled to open for employees in June. The construction delay was reported earlier by Bloomberg News.
Last month, Andy Jassy, the company’s chief executive, wrote in a letter to employees that most staff would be expected to return to the office three days a week starting on May 1.
Mr. Jassy has spent the past year pushing the company to trim costs. Amazon announced in November that it would lay off 10,000 workers, only to expand the number of layoffs in January to 18,000.
In late 2018, Amazon announced that it would be opening secondary headquarters in Queens and Arlington, Va. At the time, the company said that the developments would require $5 billion in construction and other investments. The company said that it would bring more than 25,000 jobs to the Arlington, Va., region.
In early 2019, Amazon canceled its plans for an expansive corporate campus in Long Island City in Queens after facing fierce backlash from activists, lawmakers and union leaders.
This is breaking news. Check back for updates.
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