Google halts construction on its 80-acre San Jose campus with NO plans to restart in ‘near future’

Google is halting construction on the planned 80-acre campus in San Jose and has no plans to pick it up again in the “near future” as they begin a series of layoffs and cost-cutting measures.

The Google village, called Downtown West, would have included shops, restaurants, a hotel, and cultural and entertainment centers, and may also serve as a campus for 25,000 Google employees.

The company dismantled its campus development team — which they said would have an economic impact of $19 billion — earlier this year in a series of downsizing efforts as the economy takes a turn for the worse for big tech.

Rising interest rates and fears that the country is on the brink of recession are forcing austerity.

The plan was to break ground on the site before the end of 2023, but it was put on hold after concerns about delays at the start of the year, with no plan to start again.

San Jose City Councilman Omar Torres, who represents the area, was concerned about the rumors.

“We all originally knew it was going to be a long-term plan,” Torres said in February. “But yes, it’s certainly worrying that there’s a lot of money coming in when the taps are up.”

CNBC reports that sources are “optimistic” that the campus will eventually be built, may need to be scaled.

LendLease, the project’s lead developer, laid off 67 people in February, including community engagement managers.

In a statement, a spokesperson for LendLease said they “remain committed to creating thriving mixed-use communities in the Bay Area, including the Google developments,” and that they still have a “significant team to help deliver of these communities’.

In March, Google pulled campus construction updates from its website.

Two months earlier, the company announced it was cutting 12,000 jobs, representing about 6 percent of its workforce, to cope with slowing revenue growth following record headcount growth.

Google’s finance chief Ruth Porat penned a rare company-wide email explaining how the tech giant is introducing measures to cut employee services in an effort to cut costs.

The company’s goal for 2023 is to “achieve sustainable savings through improved speed and efficiency.”

Porat explained how Google is cutting back on everything from fitness classes for its employees to basic office supplies, from staplers and tape, while also reducing the frequency of laptop replacements for its employees.

Google submitted its initial filing to the San Jose planning department on Oct. 10, 2019.

“We embrace this vision not because it’s Google’s, but because it encompasses the aspirations for a vibrant, dynamic downtown that our community has long nurtured as generations of San Joseans have sought to create a regional destination that reflects our authentic, diverse character.” San Jose Mayor Sam Liccardo said in 2021, according to Mercury News.

“Especially amidst all the challenges of this pandemic, I am grateful for the continued partnership between Google and city staff to enable our community to benefit from thousands of jobs, affordable apartments, vibrant shops and restaurants, public squares and park space.”

“We’re excited about this next step in our project, which incorporates feedback from thousands of people over the past two years and provides a new opportunity for community input,” Alexa Arena, Google’s director of development for San Jose, added at the time of the plan unveiling nearly two years ago.

The Downtown West area in San Jose would cover 80 acres, 55 of which could be developed. Of this, 30 hectares would be intended for homes and public spaces.

Under the plan, Google agreed to work with the city to ensure that 25 percent — 4,000 — of homes in the Diridon Station area will be affordable.

“We continue to hear that housing and maintaining affordability is a priority for San Jose, and our proposal provides more affordable housing, work pathways and community spaces for San Joseans,” Arena said.

The development was also asked to blend into the surrounding neighborhoods rather than act as a standalone tech campus.

“Downtown West was designed to be a real part of the city, the opposite of a traditional corporate campus,” said Laura Crescimano, founder of SITELAB urban studio, the lead urban planner on the project.

“The draft design standards and guidelines published today provide the roadmap for a resilient and connected Downtown West.”

And also historic buildings and nature in the area had to be included in the plan.

“Our team worked with Google to leverage the uniqueness of the location to envision a place where urban life and nature can coexist,” Crescimano said.

“We’ve brought together new and historic buildings, opportunities for arts and culture, playful spaces and moments of tranquility along the Creek.”

According to the draft environmental impact plan submitted in 2021, the project would generate no net additional greenhouse gas emissions.

The company said the new buildings they are developing will be nearly 100 percent electric and 65 percent of travel will include public transit, biking and walking.

The plan included the ability for Downtown West to generate 7.8 megawatts of solar power on site, as well as its own local microgrid.

Google’s plan was welcomed by city officials who say the “city-within-the-city” will greatly help residents.

“This is the next level of development for San Jose,” said Scott Knies, executive director of the San Jose Downtown Association in early 2021.

‘You have the homes, the affordable homes, and certainly the offices are there. But you also have the special combination of open spaces and cultural use that makes it truly unique.

“This is like a city within a city,” Knies added. ‘Downtown West will not become a forest of tall buildings. It’s damn impressive.’

“At a time when so much in our world is on pause due to COVID, it is encouraging to know that San Jose’s major long-term urban development project is on track and reaching a major milestone,” deputy city manager Kim Walesh said with the filings. .

The project has not been without criticism, however, as some locals fear it will displace working families and communities of color during the pandemic.

“The pandemic has made the community’s biggest concerns about this project — preventing displacement, adding affordable housing, and ensuring quality jobs for working families and communities of color — even more important,” said Maria Noel Fernandez, Silicon Valley campaign manager. Rising who fight against the plan again.