Amazon and Facebook delay planned office expansions in New York
As more companies adopt a hybrid work plan, Amazon is suspending construction of six new office buildings in Tennessee and Washington.
The delay, according to Reuters(Opens in a new window), will not affect Amazon’s hiring plans. The company still plans to create 25,000 jobs in Bellevue, Washington, and another 5,000 in Nashville, Tennessee. The pause will take effect after the halls and exteriors are built in one of Amazon’s two towers in Nashville and five buildings on its Bellevue campus.
Amazon intends to use the extra time to reassess its presence in the office, swapping traditional floor plans for more social layouts to better accommodate work-from-home schedules born of the COVID-19 pandemic. 19, The Wall Street Journal(Opens in a new window) reported. “Like many businesses, we are still learning how these new habits can impact our office footprint,” said John Schoettler, vice president of real estate and facilities at Amazon.
“The pandemic has dramatically changed the way people work,” Schoettler added. “Our offices are long-term investments and we want to make sure we design them to meet the future needs of our employees.”
Bloomberg noted(Opens in a new window) that Amazon has also decided to reduce the amount of space it intends to lease at Hudson Yards in New York. Facebook’s parent company Meta has also decided not to acquire additional square footage in Manhattan, where it already leases office space at 770 Broadway and near Astor Place.
“There are often a number of reasons why we wouldn’t proceed with a particular deal, including office use,” a spokesperson for Meta told Bloomberg. “The past few years have brought new possibilities for how we connect and work. We strive to make targeted and balanced investments to support our most strategic long-term priorities.
The social network remains “firmly committed to New York” and still plans to open the Farley Building near Pennsylvania Station “in the coming months,” Reuters said.
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