Amazon puts cap on growth in Seattle; canceled New York jobs will likely go elsewhere

[Yo_Mama_Been_Loggin]

Amazon will end its growth in Seattle in coming years after its offices under construction open up, and the 25,000 jobs intended for New York will be spread across its various North American tech hubs outside Seattle, the company said.

The company announced in a surprise blog post Thursday morning that it was canceling plans for a second headquarters in Long Island City, New York, just a few months after unveiling its intentions to split 50,000 jobs between New York and Northern Virginia. It also said it would not reopen its HQ2 search.

A spokesman said Thursday that the jobs that had been intended for New York will be created, just mostly in other cities. The focus will be on its 15 U.S. offices outside its Seattle headquarters, which include New York and also the Bay Area, Los Angeles and Boston, as well as the Canadian cities of Toronto and Vancouver, B.C.

Seattle could still get some of those jobs or benefit indirectly, though it’s too early to say, the company said.

-snip-

Amazon has slightly more than 45,000 employees in Seattle, up from 40,000 a year ago, and is by far the city’s biggest employer.

https://www.seattletimes.com/business/amazon/amazon-puts-cap-on-growth-in-seattle-canceled-new-york-jobs-will-likely-go-elsewhere/

[democratisphere]

1. Looks like Amazon sees a downturn in retail sales going into the future.

GE may be doing something similar in Boston. Interesting turn of events for both.

[Wounded Bear]

2. Not surprising...

Typical corporate 'loyalty' in these US of A.

I'm actually kind of proud that the people of Queens rose up and fought the 3 billion in tax giveaways that the politicians promised. That money was probably not likely to be recovered by economic activity, even with that many jobs 'created.'

Somehow, we have to stop corporations from these bidding wars that destroy local tax bases for their own profit.

[Yo_Mama_Been_Loggin]

3. How does it destroy the local tax base?

[Wounded Bear]

4. Well, if you have a large corporation on a large plot of land...

not paying the full value of property taxes, that is a problem, not to mention how much of the exemption is in the sales taxes, local and state. Add in the costs in necessary infrastructure such a facility will entail, and how that gets paid for. I suspect the costs will outweigh the benefits from the jobs gained.

Frankly, I would assume most of the employees will commute to the facility and not necessarily live locally, so their incomes will benefit other more remote communities.

From what I understand, much of the push back was from the local unions, based on Amazon's rather sketchy relationship with unions (to put it mildly).

[Yo_Mama_Been_Loggin]

5. Amazon was not offered anything that wasn't available to other corporations

Not saying it's right but did you know that the owners of Madison Square Garden (some cable TV group) pay no property taxes on the facility?

The supposed argument per Amazon was that the tax breaks it received would be paid back nine fold. The government of NYC is not some free market Republicans either.

As to commuting have you been to New York? Those making $150,000 a year can probably afford a place close by.