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Google’s giant San Jose campus is on hold

CNBC reports that following the initial phase of demolition, Google has halted construction on its “Downtown West” campus, which was planned to transform 80 acres of downtown San Jose, California into 7.3 million square feet of offices, 4,000 residential units, 50,000 square feet of retail and cultural space and 15 acres of parkland. The city believed the project could reach a value of $19 billion and offer 20,000 jobs after more than ten years of operation.

Google does not deny the report, with spokesperson Bailey Tomson providing the statement The edge:

As we’ve indicated, we’re working to ensure our real estate investments align with the future needs of our hybrid workforce, business and communities. As we assess how best to move forward with Downtown West, we are still committed to San Jose for the long haul and believe in the importance of development.

While that statement could mean anything from “we’ve had a little break” to “we’re not interested in it anymore,” Tomson also pointed out to us this San Jose Mercury News story suggesting that Google is merely changing the timeline, and where quoted corporate executives and development directors seem hopeful it’s just a hiatus.

CNBC seems a little less hopeful, pointing out that Google is currently trying to shrink rather than increase its office space, to the point where it costs half a billion dollars this quarter. The company cut 12,000 jobs in January. Google’s main contractor also appears to be out of work indefinitely: It has laid off more than 60 employees, with sources informing the publication that they have not been told when construction could resume.

“While sources are optimistic that a campus will be built at some point and say Google representatives have committed to it, they fear the project will not reach the scale promised in the original master plan.” CNBC writes.

We are currently awaiting confirmation and comment from the City of San Jose.

Shreya has been with australiabusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider australiabusinessblog.com, Shreya seeks to understand an audience before creating memorable, persuasive copy.

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