Amazon pulls out of New York City HQ2 plans

News General United States 15 FEB 2019
Amazon pulls out of New York City HQ2 plans
Amazon will not build its new headquarters (HQ2) in New York City after all. The company has withdrawn from its project in Long Island City, Queens, saying the idea was to build positive and collaborative relationships with state and local officials and get support over the long term. As this seems to not be the case, it will pursue the plans no longer. Amazon did say it will likely grow teams already present in the city. The company has over 5,000 employees in Brooklyn, Manhattan and Staten Island. 

Amazon said that it will be proceed as planned in Northern Virginia and Nashville but that it will not reopen the HQ2 search at this time. It will also continue to hire and grow across its 17 corporate offices and tech hubs in the US and Canada. 

Amazon held a sort of “contest” for its two new headquarters, confirming at the end of last year that its choice had fallen on New York City and on Arlington, in Virginia. The company said it would invest USD 5 billion in the new sites, and employ over 25,000 people. The project in New York raised the alarm for some people and politicians, angry at the incentives put up by the city and state, estimated at up to USD 2-3 billion. Others said the project would drive up local real estate prices and push out people living there. Still others noted that the city infrastructure was not ready for such an influx of people, cars and accompanying needs and that costs would therefore go higher for the city, state, and locals.

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