Amazon confirms NYC, Arlington chosen for new HQs

News General United States 13 NOV 2018
Amazon confirms NYC, Arlington chosen for new HQs

Amazon has confirmed New York City and Arlington, Virginia as the sites for its new headquarters. As leaked in the press already, the company ended up choosing two places for its new headquarters locations, which add to its original base in Seattle. The company said it will invest USD 5 billion in the new sites, and each will house more than 25,000 employees. 

In addition, Amazon announced that it has selected Nashville for a new Center of Excellence for its Operations business, which is responsible for the company’s customer fulfillment, transportation, supply chain and other similar activities. The centre in Nashville will create more than 5,000 jobs.

Amazon said it decided on two new HQs as both of the cities offer good opportunities for hiring new talent. The offices will be much larger than its existing HQ in Seattle, which has just 3,100 employees. 

The new Washington, DC metro headquarters in Arlington will be located in National Landing, and the New York City headquarters will be in the Long Island City neighborhood in Queens. Hiring at both the new headquarters will begin in 2019. The Operations Center of Excellence will be located in downtown Nashville as part of a new development site just north of the Gulch, and hiring will also begin in 2019.

The NYC deal includes USD 1.525 billion in incentives from the state, including a USD 325 million cash grant based on building occupancy and the remainder in tax credits for reaching hiring and salary milestones over the next ten years. Amazon also agreed to invest in community infrastructure in lieu of paying local property taxes. 

In Virginia, the company will receive performance-based direct incentives of USD 573 million for job creation. The same as New York these are based on an expected average annual wage of over USD 150,000 for the new jobs. The company will also receive a cash grant from Arlington of USD 23 million based on an expected increase in hotel taxes after Amazon's arrival, and the state of Virginia agreed to invest USD 195 million in local infrastructure to support Amazon's operations. 

Categories:

General

Companies:

Amazon,  Google

Countries:

United States

Tags:

Production planning & operations, Corporate strategy

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