Google LLC, according to reports, has put on hold its massive Downtown West Campus project in San Jose with no plans for it to be restarted in the near future.
CNBC reported on Friday that the tech giant "gutted" staff who were focused on developing campus. Lendlease Corp. Ltd. alerted state officials, in February, of its plans to layoff 67 Sunnyvale workers, including many development managers, by next week. CNBC implied that this was due to Google's decision not to continue Downtown West.
Bailey Tomson, a spokeswoman for the company, would not confirm or deny that Google had paused construction. She also wouldn't confirm if it had laid off a large portion of its team. She did, however, indicate that the company might not start construction this year, as planned.
Thomson stated in an email that "While we are assessing the best way to move forward with Downtown West we remain committed to San Jose on the long-term and believe in its importance."
Tom Reller, a spokesman for Lendlease, declined to comment on whether the company's planned layoffs were related to the Downtown West Project.
He said that he was "committed to the creation of mixed-use communities, including Google's developments" in the Bay Area.
San Jose Mayor Matt Mahan wasn't immediately available to comment, but planned to hold an evening press conference on Friday to answer questions regarding Downtown West.
Google is focusing on cutting costs, which may explain the reported pause. In January, Google announced plans to lay off 12,000 employees in its largest ever layoff. Google officials said that the company was reassessing its office space and reducing it in response to the layoffs, as well as its hybrid working arrangements.
Mercury News reported that Google had rethought its timeline but that Mountain View still intended to start construction by the end this year. The Business Journal reported in February that Jay Bechtel had left Google. He was one of Google’s top real-estate officials and led the acquisition and leasing for numerous properties.
Downtown West, planned for the area surrounding Diridon Station would include up to 7.3 million square foot of office space, 5,900 residential units, and park and community spaces. The project is expected to be completed in 10 to 30 years and could accommodate up to 20,000 workers.