Amazon halts construction on its second Virginia headquarters following the largest job cuts in its history

Amazon has decided to delay the start of construction on the second phase of its new headquarters in Arlington (Virginia, USA)as confirmed this Friday by the company, which has made a significant workforce adjustment in recent months.

“We are always evaluating space plans to make sure they meet our needs business and to create a great employee experience“John Schoettler, the company’s real estate manager, explained in a statement.

Amazon’s second headquarters, which many US cities have been vying for, will join the company’s headquarters in Seattle (Washington state) and should host it in the future up to 25,000 employees.

The first phase of the project, called Met Park, will open as scheduled next June and house more than 8,000 workers the company already has in Virginia. and who will move into these new facilities, an Amazon source explained to EFE, who stressed that the decision announced today does not imply any job cuts.

In total, Met Park has the capacity to accommodate around 14,000 employees, Therefore, for now, the company has decided to suspend the start of construction of the second phase of the project, called PenPlace.

The opening of a second Amazon location was announced in 2018 and was initially planned to be spread across Arlington and the New York borough of Queens, but in 2019, the company decided to cancel the part of the Big Apple between the local oppositions.

Decision after the layoffs

The move announced this Friday comes after Amazon announced last November that it would cut about 10,000 jobs, a figure that jumped to just over 18,000 in January, after significantly strengthening its workforce during the pandemic. .

The e-commerce giant ended 2022 with a loss of $2,722 million in 2022 compared to more than $33,000 million it earned the previous year, primarily due to its investment in electric car company Rivian.

The tech firm filed a $12.7 trillion chargeback over Rivian’s steep stock market drop and ended its first year in the red since 2014.

However, its annual net sales continued to grow until 513.983 millionwith higher sales volume in North America -its main source of income-, decline internationally and strong growth of its cloud business, Amazon Web Services (AWS).

British protests

“Amazon won’t give you anything if you don’t fight for it,” shouts one of the union organizers, brandishing a loudspeaker as dozens of striking workers protest outside the company’s technology warehouse in Coventry, central England.

“We are asking for a salary increase. One of my sons has eczema and I told him to take a bath once every two days because I can’t afford hot water,” Kaur, who declined to reveal her last name, bundled up in a jacket, told AFP jacket and a cap to protect from the winter cold.

This 40-year-old woman and mother of three works mostly nights and on her feet.

Earn £10.5 ($12.6) an hour, just over minimum wage, plus a small bonus for nights.

Your energy consumption, but also your purchase bills, have more than doubled since before the crisis, which makes “difficult to survive”.

Inflation in the UK is over 10% and although energy prices are starting to fall, the increase in food prices remains at 17%.

Valentina, a 37-year-old employee, believes the workforce is underpaid due to the hard work.

“Every day we lift heavy boxes, of 15, 17, 20 and 25 kilos. You’re hurting yourself,” she says.

Antonio Daniel, 22, drives about 120km a day and often at night, which seriously disturbs his sleep, he says.

“During Covid, we risked our health, our lives and they made huge profits,” says his colleague Dan, 29.

Now “we have to work 60 hours a week to pay the bills. We don’t have time for our family and it’s exhausting.”

Amazon’s global sales rose 9% to $514 billion in 2022, although operating profit fell to $12.2 billion due to steep cost increases.

The firm has launched a cost-cutting strategy and plans to cut 18,000 positions worldwide.

Therefore, the business landscape is complex across the globe.

With information from EFE