Google has halted construction on its 80-acre campus in San Jose with no plans to pick it up again in the “near future” as it begins a series of layoffs and cost-cutting measures.
Google Village, called Downtown West, was to include shops, restaurants, a hotel, cultural and entertainment centers, plus potentially serve as a campus for 25,000 Google employees.
The company gutted 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 deteriorates for big tech.
Rising interest rates and fears that the country was on the brink of recession prompted the cuts.
The plan was to start at the site before the end of 2023, but it was paused after concern about delays at the start of the year, with no plan to start over.
Google has halted construction on its 80-acre campus in San Jose with no plans to pick it up again in the “near future” as they begin a series of layoffs and cost-cutting measures.
San Jose Councilman Omar Torres, who represents the district, was concerned about the rumors.
“We all knew originally it was going to be a long-term plan,” Torres said in February. “But yeah, it’s definitely about a lot of the money coming in when the levers are in the air.”
CNBC Reports indicate that sources are “optimistic” that the campus will eventually be built, and may have to be scaled back.
The project’s lead developer LendLease laid off 67 workers 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 Google’s developments,” and still have “a valued team to help deliver these communities.”
In March, Google removed campus construction updates from its website.
Two months ago, the company announced 12,000 job cuts, about 6 percent of its workforce, in order to deal with slowing sales growth after record headcount growth.
Ruth Porat, Google’s chief financial officer, wrote a rare company-wide email explaining how the tech giant was introducing measures to cut employee services in an effort to reduce expenses.
Google Village, called Downtown West, was to include shops, restaurants, a hotel, cultural and entertainment centers, plus potentially serve as a campus for 25,000 Google employees.
The plan was to start on site before 2023 ended, but it paused after concern about delays to the start of the year, with no plan to start over.
Artist’s sketch of the Google Downtown West development in San Jose. The company introduced new plans in 2021
The company’s goal for 2023 is to “deliver lasting savings through improved speed and efficiency.”
Borat detailed how Google is cutting down on everything from fitness classes for its employees to office essentials of staplers and tape while reducing the frequency of laptop replacements for its workers.
Google submitted its initial application to the San Jose Planning Department on October 10, 2019.
“We embrace this vision not because it is from Google, but because it includes aspirations for a vibrant and vibrant downtown that our community has long held, as generations of San Josens have sought to create a regional destination that reflects our authentic and diverse personality,” said San Jose Mayor Sam Liccardo. Back in 2021, according to Mercury News.
“Especially amid all the challenges of this pandemic, I am grateful for the continued collaboration between Google and city employees to enable our community to benefit from thousands of jobs, affordable apartments, vibrant retail and restaurants, plazas, and park spaces.”
The company presented a more detailed plan in 2021 that outlined its idea for green spaces and parks in the area. At least 30 acres if a total of 55 acres for homes and public spaces according to existing plans
Google’s detailed plan outlines how the region will maintain its ‘core character’
The company also planned to create cultural and entertainment centers in the development
Improved plans detail zoning for development. A decision will not be made by the city until next year
Alexa Arena, Google’s director of development in San Jose, added at the time the plan was unveiled nearly two years ago.
San Jose’s western downtown area is set at 80 acres, 55 of which can be developed. Of which 30 acres are designated for housing and public places.
Under the plan, Google has agreed to work with the city to ensure that 25 percent — 4,000 — of the homes in the Deredon station area will be affordable.
“We continue to hear that housing and maintaining affordability are a priority for San Jose, and our proposal offers more affordable housing, pathways to work, and community spaces for San Joses,” Arena said.
Sundar Pichai, CEO of Google
The development was also required to blend into the surrounding neighborhoods rather than function as a stand-alone technology campus.
“Downtown West was designed to be a real part of the city, as opposed to a traditional corporate campus,” said Laura Cresimano, founder of SITELAB urban studio, lead urban designer for the project.
Draft design standards and guidelines published today outline a roadmap for a flexible, connected Midwest.
It was also necessary to incorporate the historic buildings and natural features of the area into the plan.
“Our team worked with Google to take advantage of the unique character of the site to propose a place where urban life and nature could coexist,” Crisimano said.
“We have brought together new and historic buildings, arts and culture opportunities, playful spaces, and moments of respite along the creek.”
According to the draft Environmental Impact Plan submitted in 2021, the project will not result in any net additions in greenhouse gases.
The company said the new buildings it is developing will be nearly 100 percent electric and will involve 65 percent of mass travel, cycling and walking.
The plan included the ability of Downtown West to generate 7.8 megawatts of solar power on site as well as offering its own local grid.
Google’s plan was welcomed by city officials who said the “city within a city” would be of great benefit to residents.
Estimated project schedule as of Wednesday. A final environmental impact report will be submitted by this winter and a decision could be made by summer 2021 if the review is not postponed again due to the pandemic.
“This is the next level of development for San Jose,” said Scott Kniss in early 2021, executive director of the San Jose Downtown Association.
You have the housing, the affordable housing, and certainly the offices are there. But you also have an unusual mix of open spaces and cultural uses that make it truly unique.
“This is like a city within a city,” added Kniss. Downtown West wouldn’t be a jungle of tall buildings. It’s impressive.
“At a time when so much in our world is paused due to COVID, it is heartening to know that San Jose’s most important long-term urban development project is on track and reaching a major milestone,” with the filings, Deputy City Manager Kim Wallisch said.
However, the project has not been without its critics, with some locals fearing it will displace working families and communities of color amid the pandemic.
“The pandemic has made the community’s biggest concerns about this project — preventing displacement, adding affordable housing, and ensuring good jobs for working families and communities of color — even more important,” said Maria Noel Fernandez, campaign director at Silicon Valley Rising. Who fight back plan.
