Amazon selects New York, Virginia for new headquarters

After over a year of speculation, e-commerce giant Amazon has announced it will open its new headquarters in New York City and Arlington, Northern Virginia, and expects to create 50,000 jobs across the regions.

Amazon founder and chief executive Jeff Bezos said the locations would help the company to attract world-class talent.

The New York City headquarters will be located across the East River in Long Island City, while the Arlington headquarters will be based in National Landing, less than three miles from downtown Washington, D.C.

Both areas will see Amazon invest in the realm of US$2.5 billion (approximately $3.5 billion), while employees in each area will enjoy an average salary of US$150,000 (approximately $207,600) per year.

GlobalData Retail managing director Neil Saunders offered a theory as to why Amazon decided to split its headquarters across two cities.

“In our view, the split reflects two things,” Saunders said.

“First of all, the sheer size and scale of Amazon and its interest across many areas of technology, retail, and various consumer services. This arguably warrants multiple HQ locations as opposed to a couple of large offices.

“Second, Amazon’s forecasted strong growth means it wants to avoid the issues it had in Seattle where its expansion caused problems with the supply of labor, property, and put pressure on general infrastructure. Being able to balance growth across numerous cities would help alleviate such issues.”

According to Saunders, there is further logic to the locations that Amazon selected, since New York serves as a global hub for many of the areas Amazon want to expand in, such as fashion and finance, while Arlington, being in close proximity to Washington, allows greater political links – something the business may need as it continues to grow.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Loading...

Inside Retail Polls

Myer's new chief executive
Is John King the right CEO to lead Myer's turnaround?

Twitter

Partnership to improve Pharmacy 4 Less delivery times for customers in China, as well as provide a superior shoppin… https://t.co/S9EAogH6IM

5 hours ago

Rachel Shafner alleges she was let go after applying for flexible work arrangements to pick up her children from sc… https://t.co/cgHVkWvkMs

7 hours ago

Laura Ashley is closing its doors for good in Australia, after a buyer failed to materialise during the administrat… https://t.co/drrQyZ4o0v

10 hours ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered

Privacy Preference Center