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Amazon Plans To Split HQ2 Evenly Between Two Cities, Report Says (wsj.com)

Amazon plans to split its second headquarters evenly between two locations rather than picking one city for HQ2, WSJ reported Monday, citing a person familiar with the matter, a surprise decision that will spread the impact of a massive new office across two communities. From the report: The driving force behind the decision to build two equal offices in addition to the company's headquarters in Seattle is recruiting enough tech talent, according to the person familiar with the company's plans. The move will also ease potential issues with housing, transit and other areas where adding tens of thousands of workers could cause problems. [...] The report, published Monday, did not specify the locations Amazon is exploring, but on Sunday, the newspaper had reported that the ecommerce giant was in late-stage discussions with Crystal City in Virginia, Dallas and New York City. [The aforementioned link may be paywalled; here's an alternative source.]

85 comments

  1. paywalled by Danathar · · Score: 0

    story is paywalled

    1. Re:paywalled by Oswald+McWeany · · Score: 0

      Article Paywalled and the paragraph at top didn't even say which two cities are getting the Amazon HQ. You would have thought they would of included that important information.

      --
      "That's the way to do it" - Punch
    2. Re:paywalled by XanC · · Score: 1

      Yes it does:

      "CNBC's Brian Sullivan reported this weekend Amazon could split the proposed workforce and investments between Austin and Northern Virginia."

    3. Re:paywalled by pci · · Score: 3, Interesting

      The paragraph summary is all the article says. It is all rumors at this point with three cities identified "Crystal City in Virginia, Dallas, and New York City"

      start-article

      Amazon.com Inc. AMZN -2.01% plans to split its second headquarters evenly between two locations rather than picking one city for HQ2, according to a person familiar with the matter, a surprise decision that will spread the impact of a massive new office across two communities.

      The driving force behind the decision to build two equal offices in addition to the company’s headquarters in Seattle is recruiting enough tech talent, according to the person familiar with the company’s plans. The move will also ease potential issues with housing, transit and other areas where adding tens of thousands of workers could cause problems.

      Under the new plan, Amazon would split the workforce with 25,000 employees in each city, the person said.

      Amazon is in advanced talks with multiple cities but hasn’t made a final decision on which two locations it will pick, according to people familiar with the matter. The Wall Street Journal on Sunday reported that Amazon was in late-stage discussions with Crystal City in Virginia, Dallas and New York City.

      A decision and announcement could come as soon as this week, according to people familiar with the matter. /end-article

    4. Re:paywalled by Anonymous Coward · · Score: 3, Insightful

      They would have included that important information. The great thing about summarizing a story is that it is often difficult to come up with information that the source article does not have.

    5. Re: paywalled by Anonymous Coward · · Score: 1

      PLEASE. WE do NOT want those tentacles in the great city of Austin, TX.

    6. Re: paywalled by Anonymous Coward · · Score: 0

      Hey, I can't wait for more old Austin places like the Broken Spoke, Hole in the Wall, Draughthouse, and others to be shuttered, torn down, and replaced by low-rise "rabbit warren" apartments, with no parking and 1/10 of the bottom level having hoity-toity stores with the rest vacant and going for $20,000 a month, triple net lease. We also need commute times to double, since the city isn't going to ever do any road improvements, as people should be riding bikes anyway.

      Texans love Californians, so if we can get 500 in a day, from today's 200, so much the better.

    7. Re: paywalled by Anonymous Coward · · Score: 0

      Whatâ(TM)s wrong with Baltimore?

    8. Re:paywalled by Oswald+McWeany · · Score: 1

      OK... it does now, but it didn't when I posted my comment. :)

      --
      "That's the way to do it" - Punch
  2. Always two there are by SuperKendall · · Score: 0

    A master, and an apprentice.

    Not just a humorous Star Wars reference, you know that Amazon will make one city a gulag of undesirables, and the other city where all of the golden people go to shine.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Always two there are by The+Original+CDR · · Score: 1

      Amazon is competing with Apple for multiple headquarters. More like the terrible two's than master and apprentice.

    2. Re:Always two there are by Anonymous Coward · · Score: 0

      you know that Amazon will make one city a gulag of undesirables, and the other city where all of the golden people go to shine.

      I don't know that. Care to explain how you know that?

    3. Re: Always two there are by Anonymous Coward · · Score: 0

      JUST GO AWAY.

      You aren't funny. No one cares. You are a 2017 meme. You died. Goodbye.

    4. Re: Always two there are by Anonymous Coward · · Score: 0

      Uh, no. Didn't you get THE MEMO?

    5. Re: Always two there are by Anonymous Coward · · Score: 0

      So much for not being Chris, huh you fat dummy?

    6. Re: Always two there are by Anonymous Coward · · Score: 0

      The twitter link is in his signature.

    7. Re:Always two there are by jythie · · Score: 2

      Huh... There was actually a company a recruiter was trying to get me to interview at that was pretty much structured that way. They had their location where all the stars went, and their location which, how shall we say, did not feel respected or valued by management.

    8. Re: Always two there are by Anonymous Coward · · Score: 0

      Funny how you, err "he" always pops up in "The Original CDR" threads, isn't it?

  3. Why have one corporate handout by liquid_schwartz · · Score: 5, Insightful

    when you can have two? It's double the incentives.

    1. Re:Why have one corporate handout by vux984 · · Score: 1

      That was exactly my thought too when i read this.

    2. Re:Why have one corporate handout by Anonymous Coward · · Score: 0

      Well said. Personally I find the entire episode unnecessary, the only thing which made sense to me was to set up a new HQ for a future split/division spinoff.

    3. Re:Why have one corporate handout by DogDude · · Score: 1

      Why not have one in each major city? People love everything related to Amazon. Heck, Amazon doesn't have to even turn a profit. They can just collect subsidies, if they want to. Yay, "free market".

      --
      I don't respond to AC's.
  4. meaning there is only one headquarters ... Seattle by Anonymous Coward · · Score: 0

    Seattle - One head
    Place B - half head
    Place C - half head

    Split headed? Three headquarters? Not really. Just one. Amazon has other offices. Okay, that's great.

  5. Brilliant! by Locke2005 · · Score: 2

    Then they can play the 2 cities against each other to maximize incentives/bribes!

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
    1. Re:Brilliant! by bobbied · · Score: 1

      Then they can play the 2 cities against each other to maximize incentives/bribes!

      Or just accept them from both and have two new places to house the slave drivers.... Um... Managers... And laugh all the way to the bank.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    2. Re:Brilliant! by Greyfox · · Score: 1

      A Sale of Two Titties

      --

      I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    3. Re:Brilliant! by Anonymous Coward · · Score: 0

      It was the Bezos times...

    4. Re: Brilliant! by Anonymous Coward · · Score: 0

      Come ON moderators, this parent was funny!

    5. Re:Brilliant! by mpercy · · Score: 1

      That was funny in high school, too.

  6. New York City?!?!? by Locke2005 · · Score: 2

    Wouldn't that have the highest costs of any city they considered?

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
    1. Re:New York City?!?!? by jfdavis668 · · Score: 1

      Yeah, Bismarck, North Dakota would be far cheaper.

    2. Re:New York City?!?!? by Gilgaron · · Score: 1

      Yeah that seems pretty confusing... you'd think they'd want to take advantage of cost of living differences, you could pay the same person a lot less to live somewhere where that paycheck buys an awesome house instead of a lot more for a tiny apartment.

    3. Re:New York City?!?!? by jythie · · Score: 1

      Not only that but competition for talent there is really fierce. Even though I am well outside NYC I get recruiters calling me and talking about how a couple hours on Amtrack per day isn't THAT bad and other people are doing it! I guess NYC is good if you are mostly interested in stealing other people's employees since there is already a big concentration there.

    4. Re:New York City?!?!? by youngone · · Score: 2

      Amazon are looking for subsidies. The new HQ will go to the city that pays the most. The staff will receive the lowest amount of money Amazon can possibly pay them.
      Why would Amazon care if their staff are living in a cardboard box under a bridge?

    5. Re:New York City?!?!? by jbmartin6 · · Score: 1

      Also hard to imagine how NYC would alleviate housing and transit issues associated with the old HQ. Are they planning to move half the Seattle staff to NYC?

      --
      This posting is provided 'AS IS' without warranty of any kind, implied or otherwise.
    6. Re:New York City?!?!? by Anonymous Coward · · Score: 0

      High CoL cities are high CoL because people want to live there.

      Bismark, ND is cheap because nobody wants to live there.

    7. Re:New York City?!?!? by Anonymous Coward · · Score: 0

      You will not find the same person in Bismarck, North Dakota.

    8. Re:New York City?!?!? by jythie · · Score: 1

      Yeah, you have try really hard to find cities with WORSE housing problems, but NYC would fit the bill.

    9. Re:New York City?!?!? by AvitarX · · Score: 2

      There's apartments where I live (Wilmington, DE) and they are mostly going to people that take the Amtrak daily (or at least quite frequently). It's quite surprising, but I guess it's worth 20k/year to some people for the commute.

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    10. Re:New York City?!?!? by jythie · · Score: 1

      Yeah, I know people who actually commute via SEPTA down into Wilmington or up into Philly then take Amtrak up to NYC, and I routinely get recruiters trying to convince me to do the same. Apparently the pay can be a lot better, and I guess to be fair there is a lot of tech work up there that just isn't present in the Trenton/Philly/Wilmington region.

    11. Re:New York City?!?!? by AvitarX · · Score: 1

      Sure, the pay is better, but is the rent THAT much better down this way?

      I figure your saving 20k/year or so (after considering Amtrak vs Subway prices, maybe car ownership vs no need etc.).

      I guess in Delco there's some good schools, and maybe North Wilmington, but in the city where the apartments are getting filled, the Schools are pretty bad.

      I can see taking an NYC job for 40k/year extra (though I wouldn't, and that's a huge portion of what I make here), but to then commute hours each way every day.

      I figure your at least 2.5 each way door to door for home to SEPTA to Amtrak to Subway to Office, at least if one lived in NYC it'd be closer to 45-75 minutes door to door.

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
  7. Re:meaning there is only one headquarters ... Seat by Anonymous Coward · · Score: 0

    "It was the best or times it was the blurst of times"

  8. THERE WILL BE CONSEQUENCES LYING FAGGOT KEN DOLL by Anonymous Coward · · Score: 0, Funny

    THERE WILL BE CONSEQUENCES FOR YOUR LIES NAZI KEN DOLL

    Filter error: Don't use so many caps. It's like YELLING.

  9. Cerberus by Thelasko · · Score: 4, Insightful

    I still don't understand how multiple headquarters is supposed to work. The purpose of a headquarters is to have a place to get ideas in front of the decision maker. Is Bezos going to spend a week each month at each location?

    If he isn't there, it isn't really headquarters. It sounds to me like a giant grift for taxpayer money.

    I've seen similar stunts in the past.

    --
    One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
    1. Re:Cerberus by PastTense · · Score: 1

      It sounds like an idiotic idea to me too. What companies do is to split into divisions and have the headquarters in one city and divisions headquartered in other cities.

    2. Re:Cerberus by Anonymous Coward · · Score: 0

      I agree, it doesn't seem to make sense. I opined above perhaps the real purpose is to set up another HQ for future corporate splits or divisional spinoffs.

    3. Re:Cerberus by jythie · · Score: 1

      They probably have large enough departments at this point that they could dedicate various 'HQs' to clusters of divisions of related projects. So 'fully owned subsidiary' comes to mind.

    4. Re:Cerberus by rogoshen1 · · Score: 2

      Well when you're jeff bezos, you know that you are the best leader that the world has seen since the Pharaohs. So it goes to follow that the best way to run Amazon is to create an army of bezos-clones to run each division with the type of awe-inspiring, brutal intensity that makes us lesser mortals shrivel in fear.

      So once per fiscal year these clones will travel to a secret underground arena where they will engage in a grand melee. With the winner being crowned bezos prime, and run the company until the next set of gladiatorial games.

    5. Re: Cerberus by Miamicanes · · Score: 2

      It's called, "continuity of business".

      Amazon is one of the largest companies in America. If something like an earthquake or impending volcanic eruption shut down Amazon's Seattle HQ, it would be DEVASTATING for both consumers AND vendors. As in, "could trigger a cascading chain of business failures & recession" devastating.

      Mental image: September 11, 2001. 10:27am. IT guy who just escaped from the WTC South Tower, talking to someone: " Of COURSE we have an emergency data center. It's right over there... in the North Tower..."

    6. Re:Cerberus by Anonymous Coward · · Score: 1

      They're still negotiating, the Crystal City location leaked, the other cities won't sweeten the pot any more because they think they're out. In order to keep the cities competing, and Amazon getting the best deal it can, it must keep the cities thinking they can still win if they just add a few more enticements, so it can extract the best deal.

    7. Re:Cerberus by GregMmm · · Score: 2

      Seattle has helped this move forward. If the local government feels they can push around a large company in on geographical area, they will. With 50k workers in the Seattle area, they are stuck with working with the ever expanding demands of the local government. To level the playing field open multiple "headquarters" in other states and play them against each other.

      Ask Seattle how well that worked with Boeing. Oh ya, HQ moved to Chicago. So if the government gets too over the top, they can shift employees to the other headquarters.

    8. Re:Cerberus by Anonymous Coward · · Score: 0

      Well, when you have many heads, you need many headquarters.

      Hail Hydra!

    9. Re:Cerberus by Thelasko · · Score: 1

      Ask Seattle how well that worked with Boeing. Oh ya, HQ moved to Chicago. So if the government gets too over the top, they can shift employees to the other headquarters.

      There are very few Boeing employees in Chicago. It's an HQ in name only, so they can get a taxpayer funded handout.

      --
      One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
  10. DC swamp FTW (thanks Google) by xxxJonBoyxxx · · Score: 3, Interesting

    I'd believe the Crystal City over everything else. That's where a lot of big government/defense deals go down, and Amazon is probably just giggling to itself after some Google employees decided to stage antiwar demonstrations over the past few months. (Heck, if I was Amazon, I might be paying my competitor's employees to act up.) The GCP and Microsoft Azure cloud platforms are for real (unlike, say, Oracle/IBM "clouds") and both work better in many instances than Amazon's, but if Amazon can lock itself in as the first provider of federal cloud services (and just maybe let them look at peoples' purchase history once in a while) then it's smiling all the way to the bank.

    1. Re:DC swamp FTW (thanks Google) by Anonymous Coward · · Score: 0

      I'm seriously just excited to see what happens to wages in the local area for cleared federal tech workers. Even if I'm not good enough (or wanting) to work for Amazon, my employer is going to have to up their wage game to compete. muwahahahaha

  11. Further Response by SuperKendall · · Score: 1

    I don't know that.

    Oh, you will. you will.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  12. A split? by ItsJustAPseudonym · · Score: 1

    In that case, I'd have guessed Minneapolis/St. Paul.

    1. Re:A split? by Anonymous Coward · · Score: 0

      Why not Dallas-Fort Worth or Tampa-St. Pete?

      Or even Kansas City, KS and Kansas City, MO?

  13. this can solve biggest problem of current era by Anonymous Coward · · Score: 0

    for corporations in US at least it would. You send females to city F and males to city M and you avoid sexual harassment cases at least between females and males. The one sex cases will still be possible but this is as of now minority so we can cater for that when there is need.

    1. Re: this can solve biggest problem of current era by Anonymous Coward · · Score: 0

      One sex is what the third hq is for?

  14. Well Duh by Anonymous Coward · · Score: 0

    They want to have an office in multiple regions for failover reasons.

  15. Re:It'll be NYC by Anonymous Coward · · Score: 1

    We all know southerns can barely turn on a computer. They dont want to put all their eggs in one basket, after all who has came out of DFW or Dulles?

    John Carmack and id Software came out of DFW, for one.

    Know how I know you haven't been to Texas? DFW, Austin, and Houston all have vibrant tech communities.

    Or maybe you did know that, and you just felt like being an arrogant twat.

  16. So it looks like.. by mccrew · · Score: 1

    So what they are saying is that they're gonna have
    HQ 2.1
    and
    HQ 2.b)

    --
    Hey, Windows users, there is no such thing as "forward" slash, there is only slash and backslash.
    1. Re:So it looks like.. by R3d+M3rcury · · Score: 1

      Actually, I think it's HQ-2.1 and HW-2a. Just so neither feels like it's third-best...

    2. Re:So it looks like.. by R3d+M3rcury · · Score: 1

      Dang! Just noticed it as I hit the button...

      "Actually, I think it's HQ-2.1 and HQ-2a. Just so neither feels like it's third-best..."

  17. Best plan by Anonymous Coward · · Score: 0

    A/B testing is always the better plan .
    When one city doesn't deliver as expected you already have the backup to move operations into and start your next B test plan.

  18. Make Seattle sweat by Anonymous Coward · · Score: 0

    Time to decide, Seattle? Are you going to stay woke and go broke? Or are you going to up your game to compete with better cities?

  19. So... by Zorro · · Score: 1

    Both Dallas and Fort Worth.

  20. What? by Daetrin · · Score: 4, Insightful

    "The move will also ease potential issues with housing, transit and other areas where adding tens of thousands of workers could cause problems."

    They're concerned about housing for tens of thousands of workers and they're considering New York City as one of the options? I haven't lived there myself, but from everything i've heard decent, reasonably priced housing is not something that can be found in New York City.

    --
    This Space Intentionally Left Blank
    1. Re:What? by Anonymous Coward · · Score: 1

      Reasonably priced housing is not something that can be found in Crystal City either. The only people I know that work there either commute daily from Richmond (a few even further away) or stay in an extended stay hotel during the week and come home on weekends (it's a lot cheaper). Awful place, all concrete.

    2. Re:What? by Anonymous Coward · · Score: 0

      That's why people have spread out 50+ miles to the suburbs.

  21. Vocabulary error in line 3 of google.js by Tablizer · · Score: 1

    If you have 3 headquarters, it's not really "headquarters". Just call them "major business centers" or something else big-but-nebulus (which sounds like an alt-rock band).

  22. In other words, Dallas and Virginia. by Jahoda · · Score: 2

    They're not going to have two headquarters on the east coast. And, Dallas is super Fortune 100 friendly. Additionally, it has a reasonable cost of living, and the same I am sure can be said of Crystal City, VA. Seems highly unlikely to me you'd want your new HQ in one of the most competitive and expensive labor markets in the country.

    1. Re:In other words, Dallas and Virginia. by Jumperalex · · Score: 1

      Crystal City is the opposite of affordable. I mean yeah the actual literally named area of Crystal City has semi-affordable apartments, but not a lot of them and if you want more than the basics you're going to have to look into even pricier areas or endure a horrid commute (and still pretty high prices). Living in the greater DC metro area is cheaper than NYC, but not that much. https://www.numbeo.com/cost-of...

      Still ... yeah ... NYC seems like an odd choice. Frankly looking at Northern VA I'm surprised at Crystal City other than the cheap vacant office space and metro access and proximity to DC proper and literally walking distance to the Pentagon, and .... OOOOOOhhhhhh I get it.

      --
      If you can't be good, be good at it!
    2. Re:In other words, Dallas and Virginia. by craighansen · · Score: 1

      Crystal City is also where the USPTO has been residing for a while.

    3. Re: In other words, Dallas and Virginia. by Anonymous Coward · · Score: 0

      Wrong. They're in Alexandria.

  23. amazon knows what its doing by Anonymous Coward · · Score: 2, Insightful

    They are turning in to the same type of defense contractor company. They setup a part of the business in multiple states. The get huge contracts and handouts from the government, states, cities, etc. If the incentives will never dissappear because no senator wants to be responsible for the vote that made amazon leave the area, taking 20k jobs with it. It's the same thing defense contractors do. 18 billion dollar contracts keep flowing into them, and they split the work between multiple state locations. That ensures no senator will vote against the contract, because if they do, the project shuts down, so do the plants, and that state loses the multiple thousands of jobs.

    Same formula, different company.

  24. NYC? Better a bit outside like the I80 / 287 area by Anonymous Coward · · Score: 0

    Much better general transport access, land for a distro center, and still close the city.

  25. ??? What by Daerath · · Score: 1

    That would be completely idiotic. Pick a city. Stop this nonsense. #FFS

  26. I lived near your city. by Anonymous Coward · · Score: 0

    Traffic is already a fucking nightmare in/around Austin, most of the time. Adding another few thousand people and their cars wonâ(TM)t change anything. It would be like worrying about ocean-level rise because some guy just throw the ice from the bottom of his styrofoam cup into the ocean. Yes, technically, I suppose the average height of the ocean will rise from that, but weâ(TM)re talking about a minescule fraction of a yoctometer. Youâ(TM)d never notice it.

    What Austin really needs is to build a new Austin somewhere near by, with LOTS of traffic capacity, and let people move to that. And get rid of the fucking tolls on 183A and 620 or whatever that other one is.

    Or maybe just raze Leander and build it there. Place is a shithole anyway.

  27. If they had 4, they'd be quarter headquarters by mpercy · · Score: 1

    One fourth each, right?

  28. Crydtal City by brunnegd · · Score: 1

    Add 25K employees to Crystal City? YGBSM! I thought the plan was to avoid congestion.