San Francisco Chronicle

It’s official: Amazon chooses 2 office sites

- By Joseph Pisani

Amazon, which is growing too big for its Seattle hometown, is spreading out to the East Coast.

The online shopping giant ended its 14-monthlong competitio­n for a second headquarte­rs Tuesday by selecting New York and Arlington, Va., as the joint winners. The two cities will each get 25,000 jobs that pay an average of $150,000.

But they’ll pay for it: New York is forking over more than $1.5 billion in tax credits and other incentives, while Arlington is offering $573 million. The communitie­s hope that Amazon will attract other companies and ultimately boost their economies.

Amazon, which started as an online bookstore two decades ago, has grown to a behemoth that had nearly $180 billion in revenue last year. It now owns grocer Whole Foods and online shoe-seller Zappos; makes movies and TV shows; runs an advertisin­g business; and offers cloud computing services to corporatio­ns and government agencies.

The company has more than 610,000 employees worldwide, making it the second largest U.S.-based, publiclytr­aded employer behind Walmart.

But it was the prospect of 50,000 jobs that led 238 communitie­s across North America to pitch Amazon on why they should be home to the next headquarte­rs.

Amazon could have picked a struggling city desperate for new jobs. But instead it went with two of the nation’s largest and most powerful metro areas. The reason Amazon gave: They are best suited to attract the highskille­d workers the company wants.

Amazon said it will spend $5 billion between both locations on constructi­on and other projects.

The new outposts won’t appear overnight. Amazon said hiring at the two headquarte­rs will start next year, but it could take a decade or more to build out its offices.

Amazon also said that Nashville will be home to a new developmen­t that will create 5,000 jobs, focusing on customer delivery.

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