The Detroit Post
Friday, 03 December, 2021

Amazon Austin Expansion

Brent Mccoy
• Friday, 20 November, 2020
• 8 min read

Amazon ’s Austin's growth is part of an effort set in motion years ago and not related to the company’s recent pullout of a planned headquarters site in New York, Deeper said. Whether that means additional hiring beyond the Domain 10 plan in Austin is not yet clear, but the current Austin expansion is not tied to the New York withdrawal, Deeper said.

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Amazon will not receive any financial incentives from the state or from local governments to open the new facility, according to the Greater Austin of Chamber of Commerce. As one of the world’s largest companies, with a market value approaching $900 billion, Amazon's tentacles reach throughout Central Texas.

Besides its presence at the Domain, at the six Whole Foods stores here and the warehouse in San Marcos, Austin is home to one of Amazon ’s bookstores and has been a site for new delivery and shopping projects by the company. In January 2018, Amazon named Austin as one of 20 finalists for its $5 billion-second headquarters project, which the company had announced in September 2017, spurring a more than yearlong public search.

Amazon eventually chose to split the development between New York’s Long Island City and Arlington, Va., which offered the company billions in combined incentives. Amazon decided to kill its plans for New York after backlash over the incentives offered by the city and state.

Editor's note: An earlier version of this article stated that Amazon employs 3,000 workers at its San Marcos warehouse, according to the Greater Austin Chamber of Commerce. Protesters gather in Long Island City to say “No” to the Amazon “HQ2” decision on November 14, 2018, in Long Island City, New York.

(Photo by Don Emmett / AFP) (Photo credit should read DON Emmett/AFP/Getty Images) Dr. Michael Pet of the University of Maryland's Center for Advanced Life Cycle Engineering looks at an AmazonBasics microwave from a customer who said it caught on fire.

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The more than 1 million square feet facility holds tens of millions of products, features more than 14 miles of conveyor belts, and employs more than 4,000 workers who pick, pack, and ship orders. Tomorrow Amazon will host a job fair to hire 50,000 positions in their fulfillment centers nationwide.

(Photo by Stephen Brasher/Getty Images) Together with its customer fulfillment facilities, Amazon has created more than 22,000 full-time jobs in Texas and since 2011 has invested over $7 billion in the state, including infrastructure and compensation to its employees.

“With a strong pool of technical talent in Austin and a dynamic quality of life, we are excited to continue to expand and create more opportunity in this vibrant city.” “The state of Texas has cultivated a strong and vibrant business environment, leading to more jobs and greater innovation,” said Governor Abbott.

To accommodate the additional job creation in Austin, Amazon will expand into a new 145,000 square foot office in The Domain, opening in 2020. To date, more than 12,000 employees have participated in Career Choice in the United States, pursuing degrees in healthcare, information technology, and many more areas of study.

In 2017, Amazon also aided with disaster relief efforts for Hurricane Harvey, which included AWS’ support of supplemental call centers for the Red Cross and work with the Texas Homeless Network. Over the past seven years, the company has invested more than $160 billion in the U.S., including corporate offices, development and research centers, fulfillment infrastructure, and compensation to its employees.

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Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Online retail giant Amazon is again expanding its Central Texas presence, with plans to add more than 600 tech-focused jobs at its hub in North Austin, the company told the American-Statesman.

“ Amazon is once again exhibiting its confidence in the Austin region’s ability to provide an innovative community and talent pipeline that helps fuel success by creating 600 new jobs at the Domain,” Clarisse Bosch, Austin Chamber of Commerce senior vice president of economic development, said in a statement. One of the world’s largest companies, with a market value approaching $900 billion, Amazon ’s branches reach throughout Central Texas.

Amazon told the newspaper that it plans to hire the new employees over a period of several years to fill a 145,000-square-foot space in four floors of a North Austin development called The Domain. The company ultimately chose New York's Long Island City and Northern Virginia to place 50,000 employees instead, citing the need for a robust talent pool.

Apple announced in December that it would invest $1 billion into a new campus in Austin, which will accommodate an initial 5,000 employees. Amazon will reportedly add 800 jobs to its Austin, Texas, location focused on engineering, research science and cloud computing.

The expansion adds to the growing presence of Big Tech in the area, as Apple announced late last year that it will invest $1 billion into a new campus in Austin. In a move to build up its presence in the capitol of Texas, Amazon will be adding 800 jobs to its tech hub in Austin.

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Following this decision, Amazon said that it would spread the 25,000 jobs planned for New York to its other corporate locations in North America. But in order to win in Texas, Amazon will need to beat H-E-B, a native Texan chain operating 400 stores and currently preparing an Alamo-style defense of its core business.

Amazon ’s purchase of Whole Foods gives it an inroad into the logistically fraught business of bringing perishable goods to market. Since February, Amazon has rolled out grocery delivery service in 28 cities with Whole Foods stores, including Austin and Dallas/Fort Worth.

It aims to seize control of the grocery delivery business before Amazon can scale its Texas operation substantially outside a few enclaves like Austin. H-E-B in February brought in outside help to bolster its e-commerce operations, acquiring Favor, a five-year-old Austin startup that began in California and specializes in errands and home delivery.

Favor works through a smartphone app that allows users to request restaurant takeout, groceries, a dry cleaning pickup, etc. Favor’s CEO Jag Bath, who now serves also as H-E-B’s chief digital officer, spoke Monday at an event at the University of Texas at Austin.

The company continues to add six to eight staff members per week and together with H-E-B Digital will hire “hundreds” more personnel in Austin in the coming months, Bath says. In the meantime, H-E-B has leased an 81,000 square foot renovated warehouse in East Austin as a new joint headquarters for Favor and part of the H-E-B Digital team.

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Bath recounted Monday that this decision was a hard one because it disappointed runners and clients in other states, but ultimately it helped the company. “We focused very hard on how to hit profitability, and we actually decided to double down on Texas.” Once the company became cash flow positive, the phones started ringing, the Favor CEO recalled.

At Monday’s event, Bath described his new employer in glowing terms: Hatch- member is a magnificent company,” said the British-born CEO, forgetting for a moment the proper Texas pronunciation. In Austin, Amazon is on a hiring spree to fill ‘Whole Foods Shopper’ positions to expand is Prime Now service, running radio ads and paying for premium posts on internet job boards.

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