By CultureBanx Team
- Amazon’s is pumping the brakes on its high stakes economic investment for a second headquarters in Northern Virginia
- Amazon reports around 18% of its workforce is Black
E-commerce juggernaut Amazon’s (AMZN +0.12%) is pumping the brakes on its high stakes economic investment for a second headquarters in Northern Virginia. The company is pushing back the groundbreaking of its second phase of the sprawling new campus. Amazon needs to be in a city right outside of D.C. as it looks to cut costs, while dipping into a strong talent pipeline, urban amenities like public transportation and diverse cultures.
Why This Matters: Setting up shop in D.C.’s backyard could easily up the company’s Black employee representation. The city has a population that is 45.8% Black, according to the U.S. Census Bureau, a number that’s nearly four times the national average of 13%. Currently, Amazon reports around 18% of its workforce is Black, though it’s important to note they fold their warehouse and retail staff into overall employment diversity numbers.
For Amazon it’s not just the diversity opportunity that could hold major keys to success for its HQ2, but also the close proximity to lawmakers. “Our second headquarters has always been a multi-year project, and we remain committed to Arlington, Virginia, and the greater Capital Region,” said John Schoettler, Amazon’s real estate chief to CNN.
Being in the backyard of lawmakers could prove to be a win-win for the company, especially as conversations around the company’s labor practices and potential antitrust regulations continue to gain momentum. However, the company’s decision to pause construction comes just two months after Amazon CEO Andy Jassy confirmed the company would be eliminating more than 18,000 jobs.
What’s Next: As Amazon looks to build out its talent pipeline, they will most likely tap into the HBCUs in the area, especially because they have already hired more than 8,000 employees for its second headquarters. The first phase of Amazon’s HQ2, dubbed Met Park, is still under construction and expected to open in June 2023.
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