Retail

Amazon finally explains why it's cutting its second headquarters in half

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Amazon CEO Jeff Bezos. Alex Wong/Getty Images
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Amazon said Tuesday that it will split its second headquarters between two cities: Arlington, Virginia, and Long Island City in Queens, New York.

When Amazon launched its headquarters search more than a year ago, the company promised a $5 billion investment and 50,000 new jobs to the winning city.

Now, those jobs will be split evenly among Virginia and New York.

Read more: 'We do have sewage problems': Long Island City, where Amazon will put part of HQ2, badly needs infrastructure upgrades

The split, news of which had previously leaked, came as a shock to many who had been following the highly publicized contest for Amazon's new headquarters.  

Amazon explained its decision to halve its headquarters on Tuesday, saying it was driven by access to talent. 

"We can recruit more top talent by being in two locations," the company said in a news release. "These are fantastic cities that attract a lot of great talent."

Read more about Amazon's HQ2:

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Hayley Peterson
Hayley Peterson
Hayley Peterson is an Executive Editor who oversees coverage of the economy, tech, media, advertising, defense, careers, and more.She was previously a chief correspondent at Business Insider and wrote breaking news, analysis, and in-depth investigations on large consumer companies, with an emphasis on retailers including Amazon, Walmart, major grocery chains, and department stores.Hayley won recognition from the Society for Advancing Business Editing and Writing in 2018 for "defining the retail apocalypse" through her reporting on retail job losses, the decline of Sears, and the impact of store closings on bondholders.Prior to joining Business Insider in 2013, Hayley was a White House correspondent and embedded on the presidential 2012 campaign trail.