July 15, 2024

The Queens County Citizen

Complete Canadian News World

Google has halted construction of a massive new campus

Google has halted construction of a massive new campus

According to local newspapers and the chain American CNBC, Google has stopped the construction of its new site in San Jose, Silicon Valley, which is spread over 32 hectares with offices, parks, retail, hotels and 4,000 homes.

According to CNBC sources, the mega-campus, known as Downtown West, is valued at $19 billion and may never see the light of day.

Like its neighbors, the Californian technology giant is facing a negative economic situation and a situation that is very different from before the pandemic.

Google did not immediately respond to a request from AFP.

According to local channel KRON4, the new site is expected to create 25,000 jobs in the region and bring $155 million in revenue to San Jose.

Alphabet, Google’s parent company, received a building permit in June 2021. Construction on the site will begin in 2023 and last for a decade, according to local newspaper the Mercury News.

Currently, the site is a “primarily demolition area that risks becoming a blight on the landscape in the long term,” CNBC said.

The group, which will have more than 190,000 employees worldwide by the end of 2022, announced in January that it is eliminating around 12,000 positions (just over 6% of the total workforce) in the wake of similar social plans at Amazon, Meta and Microsoft.

The world’s number one in online advertising is facing budget cuts from advertisers facing rising interest rates, after the pandemic hit the entire sector. Its net profit is expected to decline by 21% to $60 billion in 2022.

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Ruth Porat, Alphabet’s chief financial officer, warned in early February that the company would end some office leases “in line” with staff readjustments, which are expected to cost about $500 million in the first quarter of the year.

“We will continue to optimize our real estate portfolio,” she said during a conference call with analysts.

Before the pandemic, Silicon Valley companies were known for their sprawling campuses, with free gyms and restaurants for employees.

But these working conditions are changing.

According to an internal message from last February, seen by CNBC, Google asked cloud business employees to “share offices and alternate their days” individually in five American cities, including San Francisco, so that the ‘company could continue to invest. The growth of this action.

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