Google’s ambitious plans for an 80-acre Downtown West campus in San Jose, California, have been jeopardized by the company’s recent cost-cutting measures. The tech giant’s plans for the “mega campus” were approved in June 2021, with an estimated investment of 19 billion dollars (17 billion euros). The development included the construction of thousands of new homes and 15 acres of public parks.
However, the future of the project now seems uncertain, with construction halted and no clear plan to resume the project. As part of its cost-cutting measures, Google reportedly shut down its San Jose campus development team and informed contractors late last year that the project could incur delays and changes. The project’s lead developer, LendLease, laid off 67 employees in February, including several community engagement managers. Meanwhile, Google removed construction updates from its website for the project.
Despite sources’ optimism that a campus will one day be built, fears remain that the project will not reach the scale promised in the original master plan. The company has cut 12,000 jobs, about 6 percent of its workforce, to deal with declining revenue growth. This measure may have contributed to the current state of the project. Google’s $10 billion investment in at least 20 essential real estate projects by 2022 was intended to fund the San Jose project and others. But the tech industry’s struggle to adapt to a post-Covid world that appears to be more hybrid and less centered around large campuses has further complicated things.
Google spent years planning the San Jose complex and convincing the local community. To support the community, the tech giant designated more than half of its campus for public use and offered a $200 million package of community benefits. However, during the demolition phase of the project, several San Jose historic landmarks were demolished and others had to be moved, sparking controversy among some residents. While Google has stated it will “remain committed to San Jose for the long term and believes in the importance of the development,” the fate of the Downtown West campus remains uncertain.
