Skip to content

Amazon suspends the construction of its headquarters in New York

In January of last year, Amazon confirmed the list of cities chosen as finalists to host its new headquarters. New York was among them. After several comings and goings the giant retail channel confirmed at the end of 2018 that the Big Apple had been chosen. In the end he chose to suspend his plans.

Both the governor of New York and the city of the same name had been enthusiastic about the idea of Amazon establishing its second headquarters in its territory. Majority of the population was also in favor of this movement. However, the company of Jeff Bezos has run into problems and controversies derived from the opposition of many authorities and local governments.

The Amazon project for New York was simple and clear. It aimed at establishing a second headquarters. This would represent an investment of 2,500 million dollars and generate at least 25,000 jobs directly. Impressive numbers that any city would want for itself, where is the problem then?

Reasons for rejection

Governments and local authorities have shown their rejection of two major issues. The first is that they do not agree with giving $ 3 billion in grants to Amazon so that they can set up that second headquarters in New York. Yes, it is an important figure that exceeds, in fact, the amount of the initial investment. This is compensated with plenty with the generation of employment. in addition, the 27,000 million dollars in taxes that Amazon would end up paying in a period of approximately 25 years.

It is important to bear in mind that despite the rejection of the local authorities the construction of this second headquarters in New York, specifically in the neighborhood of Queens, has not been definitively canceled. It has been suspended.

Everything seems to indicate that the firm headed by Jeff Bezos would be willing to accept a considerable reduction in subsidies. This will be to maintain its initial plans to establish in New York. The reason is simple. It is an area rich in young and talented professionals. Something that is of great interest to Amazon. As we know it is a company that has become more than just a giant of the retail channel.

We do not know if in the end there will be agreement. If the construction of that headquarters will go ahead, but seen what is seen is beneficial for both parties.

Published inE-commerce

Be First to Comment

Leave a Reply

%d bloggers like this: