Amazon weighing hybrid work, pauses construction of new U.S. offices
- Amazon is looking to create 25,000 jobs in Bellevue
- Meta and Amazon reduced their initial square footage requirements in New York
Amazon has paused construction on the six buildings in Bellevue and Nashville as the company as it looks to make accommodations for a hybrid model of working, the tech behemoth told Reuters on Friday.
The pause in the construction is unlikely to affect the tech company’s hiring plans, according to a company spokesperson. Currently, Amazon has pledged to create 25,000 jobs in Bellevue and 5,000 in Nashville.
Vice President of Global Real Estate and Facilities at Amazon, John Schoettler, said that while the pandemic has changed how people work, the company was invested in making sure their offices were long-term solutions that would meet their employees’ needs.
Amazon is joining a list of slowly growing Silicon Valley companies that have put their office expansion plans on hold. On Friday, Meta announced that they would be scaling back their office expansion in New York City, a move that was mirrored by Amazon.
The Zuckerberg-run company did not take the additional 300,000 square feet on Broadway at the building that currently is the NYC headquarters. Even Amazon cut down the space it was going to lease from JPMorgan Chase & Co, according to a Bloomberg report.
A Meta spokesperson told Reuters that there were various reasons why they wouldn’t close a particular deal, going on to say that the pandemic has changed the way people “connect and work.” However, the spokesperson confirmed that they Farley location in New York would open as scheduled.
Even though Big Tech companies saw record growth during the pandemic years between 2020 and 2022, the growth is slowing as companies are being hit by a growing recession and changing geopolitics.
Over 60,000 tech jobs are expected to be lost by the end of this year, according to a report from Crunchbase. Companies have become more open to the idea of hybrid workspaces after C-suite executives noticed that there hadn’t been a dip in productivity.