- Business

New York Loses Out on Amazon’s Promise of Creating 25,000 Jobs

Amazon has said that it will no longer be building its second headquarters in New York, a move that would have created thousands of jobs in the city.

On Thursday, Amazon announced that it is pulling out of its agreement with New York to build its headquarters in the Long Island City neighborhood of Queens. The tech giant had initially promised to create 25,000 jobs in the city and this would have happened over a period of 15 years.

When Amazon revealed, in November, that it would be building one of its headquarters in the Long Island City section of Queens and another in Arlington, Virginia, Gov. Andrew Cuomo and Mayor Bill de Blasio were excited about the development. The presence of Amazon in New York was expected to further boost the city’s economic growth, especially in the advertising and technology sectors.

Cuomo had previously stated that the Amazon deal would rake in revenue of about $27 billion in exchange for an incentive package of nearly $3 billion. Local politicians and activist were, however, displeased with the nearly $3 billion incentive promised to Amazon.

Reports say that the political opposition that Amazon faced prompted it to cancel its plans to build its headquarters in New York. Confirming the news, Amazon’s spokesperson said that the bulk of the 25,000 jobs that it had promised to bring to New York will now go to other offices owned by the company across 17 North American cities including Chicago, Toronto, San Francisco, and Boston. Amazon had plans to spend $2.5 billion on the New York building project.

The company says it will expand its existing New York offices which currently has about 5,000 employees. Amazon also disclosed that it is not looking for a replacement for the proposed New York headquarters.

Gov. Cuomo said that if Amazon had gone through with their plans, the project would have helped in the acceleration and diversification the city’s economy as well as generate money for housing, schools, and transit.

Alice Clarke

About Alice Clarke

I am a freelance journalist, producer and writer. I have written for publications such as the Herald Sun and The Age. I have worked in many fields related to technology and computing, including system design, assembly and sales, quality assurance testing, and technical writing. I received a BS in finance and a BA in international relations from the University of Pennsylvania and an MBA from the Stanford Graduate School of Business.
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