Amazon halts work on 2nd headquarters in Virginia

Amazon has suspended construction of its second headquarters in Virginia, a move that comes as the company tries to cut costs amid slower growth and tighter profit margins.

The delay was confirmed Friday by Amazon real estate director John Schoettler. “We are always evaluating space plans to ensure they meet our business needs,” he said in a statement.

The pause will affect PenPlace, the second stage of construction in Virginia. Construction on Amazon’s Met Park campus is nearing completion and is expected to open to employees in June. The construction delay was reported earlier by Bloomberg News.

Last month, Andy Jassy, ​​the company’s chief executive, wrote in a letter to employees that moststaff are expected to return to the office three days a week starting May 1.

Mr. Jassy has spent the last year pushing the company to cut costs. Amazon announced in November that it would lay off 10,000 workers, only to raise the number of layoffs in January to 18,000.

In late 2018, Amazon announced it would open secondary headquarters in Queens and Arlington, Virginia. At the time, the company said the developments would require $5 billion in construction and other investment.The company said it would create more than 25,000 jobs in the Arlington, Virginia area.

In early 2019, Amazon canceled plans for a sprawling corporate campus in Long Island City, Queens after facing backlash from activists, lawmakers and labor leaders.

This is breaking news. Check back for updates.