Citigroup Moving Long Island Employees To Make Room For Amazon HQ2

Citigroup on Tuesday announced that they will move approximately 1,100 employees out of its offices at One Court Square in Long Island over the first two quarters of 2019. 

The financial giant currently leases 30 floors of the Long Island City tower’s 42 floors, while Amazon wants to use 23 floors according to Bloomberg, citing a person with knowledge of the matter. 

According to the press release, Citigroup will move some of their employees to other floors at One Court Square, while others will end up at their Tribeca headquarters and other nearby offices. 

Citi CEO Michael Corbat said, “given what it would mean to New York and Long Island City to have Amazon establish a significant presence here, we want to do our part to make this possible.” adding “As a company that has been based here since our founding 206 years ago, we couldn’t be happier to welcome Amazon to the great City of New York.” 

Amazon formally announced plans on Tuesday to split its second headquarters between Arlington, VA and Long Island. They will also create over 5,000 jobs in Nashville, Tennessee with a new operations center. 

Between the two HQs, the tech giant invest $5 billion and create more than 50,000 jobs across the two locations, with more than 25,000 employees each in New York City and Arlington, according to a blog post. The new locations will join Seattle as the company’s three headquarters in North America.

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Some more details: the new Washington, D.C. metro headquarters in Arlington will be located in National Landing, and the New York City headquarters will be located in the Long Island City neighborhood in Queens. Amazon’s investments in each new headquarters will spur the creation of tens of thousands of additional jobs in the surrounding communities. Hiring at both the new headquarters will begin in 2019. The Operations Center of Excellence will be located in downtown Nashville as part of a new development site just north of the Gulch, and hiring will also begin in 2019.

In other words, investing $5BN to grow while getting over $2BN back in direct incentives, with potential upside for more.

Finally, Amazon dedicates a section of its blog post to answer “what role did economic incentives play in Amazon picking these locations and what incentives have been agreed?” and answers: “Economic incentives were one factor in our decision—but attracting top talent was the leading driver. Our agreements with each location may be downloaded:”

  • New York City, New York here
  • Arlington, Virginia here and here
  • Nashville, Tennessee here and here

Read the full blog post from Amazon here.

 

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