Amazon Cancels New York HQ2 Plans

Four months after Amazon’s decision to open two headquarters in the Long Island City neighborhood of Queens in New York and Arlington, Virginia, the e-commerce company terminated plans to operate in Long Island City.

The director of the New York state budget, Robert Mujica, wrote an open letter on this “tremendous loss for New Yorkers” with lessons learned.

This deal was going to be the largest economic development opportunity for the Empire State. The second largest project in New York created 1,000 jobs while Amazon was expected to create 25,000-40,000 jobs. The year-long competition turned a victory for New York into a letdown. Mujica explained that factors such as the sway in local government opinion and a lack of communication about the project from city and state government are among the reasons Amazon chose to no longer proceed in New York.

While Mujica expressed his disappointment in the decision, this can all be taken as a lesson learned for the future.

Philadelphia was on Amazon’s shortlist of 20 cities for their second headquarters. During the bidding process many cities, including Philadelphia, had the opportunity to assess and promote their region’s assets leading to increased visibility and opportunity in the marketplace.