Amazon.com Inc. has failed to meet its annual job creation targets at its second headquarters in Arlington, Virginia, for the third consecutive year, according to a progress report released April 20, 2026. Data obtained from the Virginia Economic Development Partnership reveals that the technology giant is significantly behind the hiring schedule established in its 2018 agreement, which promised up to 750 million dollars in state subsidies in exchange for 25,000 high-wage jobs.
The annual filing shows that Amazon ended the 2025 calendar year with a net loss of 73 incentive-eligible positions, a sharp contrast to the more than 1,600 new jobs projected for the period. As of December 31, 2025, the company had created a total of 7,159 qualifying jobs at the site known as HQ2. Under the initial development timeline, Amazon was expected to have reached 11,643 qualifying positions by this stage, meaning the company has achieved only 28.6 percent of its ultimate goal rather than the 46.5 percent mark originally anticipated.
The shortfall directly impacts the disbursement of performance-based grants. Virginia committed to paying Amazon 22,000 dollars for each new job created that meets specific wage requirements, which currently sit at an average annual salary of approximately 164,000 dollars. Because these incentives are only paid after job creation is verified, the state has not yet issued the full tranches of funding initially slated for this period. In its latest application, Amazon downgraded its confidence in reaching the 25,000-job target by 2038 from high to moderate for the second year in a row.
Company officials cited broader economic headwinds and internal restructuring as primary drivers for the hiring slowdown. Holly Sullivan, Amazon’s vice president of worldwide economic development policy, stated that while the company remains committed to the region, global economic forces have moderated the pace of expansion. The growth stagnation coincides with the continued pause on PenPlace, the second phase of the HQ2 campus. While the first phase, Metropolitan Park, remains operational, construction on the second phase—including the signature Helix tower—has been suspended since early 2023.
The office of Governor Abigail Spanberger noted that while Amazon remains a significant driver of regional economic activity, the state continues to monitor the company’s progress toward its contractual obligations. Local analysts observed that the slower-than-expected influx of workers has created ripple effects in the Northern Virginia commercial real estate market, where several secondary developments were planned around the expectation of a faster HQ2 buildout. Despite the current shortfall, Amazon has invested approximately 2.5 billion dollars in the Arlington campus to date and maintains that HQ2 remains a long-term priority for the company’s East Coast operations.