There has been all sorts of leaked information regarding Amazon’s new headquarters location. Since the months of these leaks, we’ve finally learned where the company will be expanding into.
Interestingly, it’s not a single expansion like everyone thought. Instead, Amazon is establishing two new offices. One will be in Long Island City, Queens, New York, and the other will be in Arlington, Virginia. Of course, the first space resides in Seattle, Washington. That makes three total offices once these two new ones go up.
Also, Amazon revealed that Nashville would be its own “Center of Excellence for Operations”. However, this new space is for “fulfillment, transportation, supply chain, and related areas, with 5,000 jobs to be filled,” according to TechCrunch.
Jeff Bezos, who needs no introduction, made a statement on the matter:
“We are excited to build new headquarters in New York City and Northern Virginia. These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come. The team did a great job selecting these sites, and we look forward to becoming an even bigger part of these communities.”
Amazon will be investing $5 billion into both locations, splitting them at an even $2.5 billion each. Also, both headquarters will create over 25,000 jobs each. However, the company will receive money for these expansions as well.
As “performance-based direct incentives,” Amazon will receive $1.525 billion for their job creating in Long Island City. That money includes around $1.2 billion in refundable tax credit over the next ten years. This number equals out to around $48,000 per job for approximately 25,000 jobs and an average wage of near $150,000.
The Virginia location will receive incentives worth $573 million for the same reasons as above. However, some of that money consists of a “workforce cash grant”. The grant is from the Commonwealth of Virginia and can go up to $550 million. These figures are taken from Amazon’s $22,000 and are rewarded for each job created over 12 years. That said, the company must create these “high-paying jobs” to receive the incentive.
Virginian Governor Ralph Northam praised the collaboration:
“This is a big win for Virginia – I’m proud Amazon recognizes the tremendous assets the Commonwealth has to offer and plans to deepen its roots here. Virginia put together a proposal for Amazon that we believe represents a new model of economic development for the 21st century, and I’m excited to say that our innovative approach was successful. The majority of Virginia’s partnership proposal consists of investments in our education and transportation infrastructure that will bolster the features that make Virginia so attractive: a strong and talented workforce, a stable and competitive business climate, and a world-class higher education system.”
Finally, the Nashville Center of Excellence will see incentives of up to $102 million off of 5,000 potential jobs with an average wage of $150,000. Some of this money is from a $65 million cash grant from the state and is based on those jobs coming within seven years. The pay is equal to $13,000 per job.
“Amazon’s decision to expand its presence in Nashville is a direct result of the talented workforce and strong community we’ve built here,” comments Nashville’s Mayor David Briley. The Mayor claims that Amazon’s jobs are of high-quality and will help provide citizens with great new opportunities. That and the Center will prove that Nashville is a “premiere location for business investment.”
Currently, Amazon employs over 610,000 workers across the world. 250,000 of those employees are in North America. In fact, places like the American Customer Satisfaction Index, Fortune, and even LinkedIn rank Amazon among their top two companies.