Amazon cancels New York City HQ2 project and 25,000 jobs

The world’s largest online retailer has pulled the plug on creating a new hub in New York.

Following “fierce opposition”, Amazon has cancelled plans to create a new headquarters in New York City. The project would have seen 25,000 people employed.

In a statement, the company revealed that it had “decided not to move forward” with plans to build in Queens. Basically, local political opposition is thought to be the main reason behind the U-turn.

The new waterfront campus would have employed around 25,000 people. Also, it would have reportedly got £3bn in subsidies and tax breaks from the state and city. Even though it was supported by New York City governor, Andrew Cuomo, and mayor Bill de Blasio, the move will not go ahead.

Initially, Amazon ran a national competition, where cities competed in a bid to host a second headquarters. As we know, Amazon picked New York and Arlington, Virginia.

Alas, it seems the New York build wasn’t to be. However, Amazon still intends to proceed with its Virginia plans, where it has been more gladfully received.

Update on plans for New York City headquarters https://t.co/5vzySKwbBK

— Joe Nolan (@josephmnolan) February 14, 2019

What has Amazon said about the plans?

On Valentine’s Day 2019, Amazon published a statement under the Company News section of its site. In the post, titled ‘Update on plans for New York City headquarters’, the company’s disappointment was aired.

“After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens,” read the post.

“For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term.”

The statement then acknowledged that, even though polls show 70% of New Yorkers support plans, there was opposition. Amazon say “a number of state and local politicians” made it clear that they “will not work with us to build the type of relationships” required.

“Disappointed”

“We are disappointed to have reached this conclusion,” continued the post. “We love New York, its incomparable dynamism, people and culture.”

Amazon is the world’s largest online retailer. Credit: Pixabay

Amazon also praised the community of Long Island City in particular. It added: “We gotten to know so many optimistic, forward-leaning community leaders, small business owners, and residents.

“The are currently over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.”

Deep gratitude was also paid to Governor Cuomo, Mayor de Blasio and their staff. The statement concluded by saying: “We hope to have future chances to collaborate as we continue to build our presence in New York over time.”

Not opening search for second headquarters

“We do not intend to reopen the HQ2 search at this time,” confirmed the statement.

“We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the US and Canada.”

Further information, and the full statement, can be found here.