Google halts San Jose campus project because of financial issues
The tech company Google is going to build a new campus in California. However, it seems like the project has been affected by the global economic situation. According to 9to5Google (via CNBC), Google has halted development on an 80-acre facility in San Jose, California.
Google originally received approval in 2021 for the construction of a sizable new campus in San Jose, known as “Downtown West.” The estimated 7.3 million square feet of office space on this massive site is worth $19 billion. Additionally, the construction was originally scheduled to begin in 2023. But because of financial concerns, the company decided to put the project on hold.
As a part of the cost-cutting strategy, the tech company planned to lay off around 12,000 employees which equals around 6% of its staff. Sources suggest that the company has no plans on resuming the construction. Furthermore, Google has removed the construction data and updates from its websites. Delaying the project might put the site “at risk of becoming a long-term eyesore and economic zero” given that the first phase of demolition is also finished.
Despite the hope for the Google campus in San Jose, it’s possible that the project won’t reach the size anticipated in the original master plan. The original plan included retail establishments, restaurants, and housing for Google personnel. Late last year, the company began notifying contractors that it might alter the plans for the new facility.
An official from Google stated that the company is making sure its real estate purchases “match the future needs of our hybrid workforce, our business, and our communities.” Google adds that it is determining the best approaches to proceed with the Downtown West facility while staying committed to the developments in San Jose.
Aside from this, the competition in the search business has put the company in a difficult situation. The company is facing challenges from the existence of ChatGPT, Microsoft Edge, and soon-to-be-public TruthGPT by Elon Musk. Google has dominated the search engine space for ages. However, now its dominant position is under threat by an AI chatbot. To combat this situation, the company has developed a unified team called Google DeepMind.
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