Amazon Pauses Construction Of 2nd Headquarters In Arlington: Report

ARLINGTON, VA — Amazon on Friday said it is pausing construction on its second headquarters in Arlington as the company reassesses its office needs amid ongoing job cuts, according to a Bloomberg News report.

Amazon's real estate chief John Schoettler confirmed the pause in a statement to Bloomberg News.

The first phase of the HQ2 campus will be completed as scheduled, according to Bloomberg. The company plans to move more than 8,000 workers to two completed office towers in Metropolitan Park by June.

The delay will affect PenPlace, a more extensive phase across the street that includes three 22-story office towers and the 350-foot-tall Helix, Bloomberg reported. Arlington officials approved the project in April.

In 2018, Amazon announced that Arlington would be home to its second headquarters. The project was slated to bring more than 25,000 jobs to the region, according to Amazon's website.

In December 2019, the Arlington County Board approved Amazon's plan to transform 6.2 acres of Pentagon City's Metropolitan Park from abandoned 1950s-era warehouses and surface parking into the first phase of Amazon's new headquarters.

The approximately 2.1-million-square-foot project is currently under construction at 1232-1450 S. Eads St. and 501 and 525 15th St. S.

Phase one of the project included new and improved public open spaces, a $20 million affordable housing contribution, two new public streets, sidewalk and streetscape improvements, and street-level retail space.

In April, county officials approved the project's second phase after Amazon announced plans in February 2021 for a 350-foot helix tower to anchor the space.

Amazon said the project's second phase, called PenPlace, would also include an amenity building with a community gathering space and daycare center, three retail pavilions, three acres of open space with a dog run, and a 250-seat amphitheater for public use.

PenPlace is surrounded by Army Navy Drive, South Fern Street, 12th Street South and South Eads Street.

Since announcing Arlington as the site of its HQ2 in 2018, Amazon said it had committed more than $35 million in total investments to local nonprofits, community groups, public schools and businesses. This includes monetary and in-kind donations, like school supplies to public schools across Northern Virginia and food donations to local food banks and pantries for needy families.

Last year, Amazon announced layoffs totaling 18,000 jobs, or 1 percent of its 1.5 million global workforce. Amazon told WUSA9 the planned layoffs would not affect progress on constructing the first phase of HQ2 in Arlington.

Schoettler told Bloomberg News that the company had targeted the first months of 2023 for phase two's formal groundbreaking and hoped to complete the project in 2025.

Schoettler didn't specify a new start date, Bloomberg reported.

In a statement issued Friday afternoon, Rep. Don Beyer said he spoke with Amazon staff who "assured me the company remains committed to HQ2 in Northern Virginia and providing the community benefits previously agreed upon."

"While this construction pause and hiring freeze are obviously concerning, Amazon says the impact on planned infrastructure investments announced as part of the HQ2 project will be less than some feared," Beyer said.

According to Beyer, Amazon also plans to cover costs created by delays in school construction. The housing equity fund will also be unaffected, Beyer said.

Beyer also said Amazon will not receive any financial incentives until the company fulfills its investment goals.