(KRON) — Construction has been halted on Google’s large mega-campus, KRON4 confirmed on Friday. The project was supposed to bring 4,000 living units and 25,000 jobs to the South Bay.
KRON4 previously reported that the campus would bright significant revenue to the City of San Jose and help the city handle its homelessness problem. The construction delay puts those rewards at risk.
“As we’ve stated, we’re working to ensure our real estate investments match the future needs of our hybrid workforce, our business and our communities. While we’re assessing how to best move forward with Downtown West, we’re still committed to San José for the long term and believe in the importance of the development,” a Google spokesperson said.
If completed, the campus will span 80 acres at its location near Diridon Station. The campus was supposed to take about 10 years to build.
In January, Google announced that it was laying off 6% of its workforce, which amounts to 12,000 workers. CEO Sundar Pichai said the layoffs came after a “rigorous review” of Google’s operations.
CNBC reported that there is no plan to restart construction. The project was supposed to break ground before the end of 2023. The outlet said that Google gutted its development team for the campus as part of cost-cutting measures.
San Jose Mayor Matt Mahan is staying upbeat about the planned campus despite the project being put on hold.
“When tech companies have money they expand, and when they don’t they contract. This is a 30-year plan,” he said.
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The halt to construction is just the latest indication of ongoing troubles for the tech industry. Earlier on Friday, a report surfaced that SF-based Lyft would be laying off 1,200 workers.