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Amazon's HQ2 in Virginia finally opens — does it still make sense?

 1 year ago
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Amazon's HQ2 in Virginia finally opens — does it still make sense?

Amazon opens second headquarters: What it means for the company
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Amazon opens second headquarters: What it means for the company
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Alexandra Garfinkle
·Senior Reporter
Sat, June 17, 2023, 12:01 AM GMT+9·3 min read

Amazon (AMZN) officially opened up its second headquarters, called HQ2, in Arlington, Va., on Thursday.

It's been in the making for the better part of a decade when the plan for a second HQ was first made public in 2017 – back when Amazon founder Jeff Bezos was still the company's CEO.

The opening, though, comes at a time of turmoil for America's second largest company. Amazon has pushed through 27,000 layoffs in its corporate workforce as it negotiates a difficult post-pandemic boom economic period.

The company, which has its first headquarters in Seattle, isn't thinking about HQ2 as an expansion, though, said Amazon Vice President of Economic Development Holly Sullivan. "I would think about HQ2 as us living up to our commitments…and, today, we delivered on our commitment," she said, adding that HQ2 will fundamentally make Amazon more efficient.

"It improves workflow, especially across time zones, and the ease of doing business is no longer dependent on time zones," she told Yahoo Finance.

The new facility, called Metropolitan Park, features 2.1 million square feet of office space, a 2.5 acre park, and 50,000 square feet of retail space, which will be occupied by local businesses like a dog day care and a taqueria, said Sullivan. The campus includes two 22-story buildings, Jasper and Merlin, that were built to highlight sustainability.

Virginia Gov. Glenn Youngkin, center, with Holly Sullivan, Vice President of Economic Development at Amazon, center right, cut the ribbon during a grand opening ceremony at Amazon's second headquarters, HQ2, in Arlington, Va., Thursday, June 15, 2023. From right, Christian Dorsey, Chair of the Arlington County Board of Directors, Lieutenant Gov. of Virginia Winsome Earle-Sears, John Schoettler, Vice President of Global Real Estate and Facilities at Amazon, Holly Sullivan, Gov. Glenn Youngkin, Brian Huseman, Vice President of Public Policy and Community Engagement at Amazon, and Youngkin's wife Suzanne Youngkin. (AP Photo/Jacquelyn Martin)
Virginia Gov. Glenn Youngkin, center, with Holly Sullivan, Vice President of Economic Development at Amazon, center right, cut the ribbon during a grand opening ceremony at Amazon's second headquarters, HQ2, in Arlington, Va., Thursday, June 15, 2023. From right, Christian Dorsey, Chair of the Arlington County Board of Directors, Lieutenant Gov. of Virginia Winsome Earle-Sears, John Schoettler, Vice President of Global Real Estate and Facilities at Amazon, Holly Sullivan, Gov. Glenn Youngkin, Brian Huseman, Vice President of Public Policy and Community Engagement at Amazon, and Youngkin's wife Suzanne Youngkin. (AP Photo/Jacquelyn Martin)

Though Thursday marked the official opening, Metropolitan Park has been opening in phases over the last few weeks. Merlin, for instance, has been open for about three weeks, and on Thursday, the company welcomed 3,000 employees to the offices, Sullivan told Yahoo Finance.

HQ2 was conceived in a pre-pandemic world, some time before COVID-19 popularized remote work. In recognition of how working environments have shifted, Amazon in its HQ2 design was "looking to meet the need for increased collaboration space," said Sullivan. The buildings feature a series of central floors and an emphasis on breakout rooms in the planning, she added.

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