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Amazon Dropped St. Louis Due to a Talent Shortage

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Apr. 21 2018, Updated 10:59 p.m. ET

Lack of a “blueprint for talent”

St. Louis, Missouri, didn’t make it to the list of 20 finalist cities Amazon (AMZN) is considering as a potential home to its second corporate headquarters, referred to as HQ2. About 238 cities and regions across the US, Canada, and Mexico bid to host Amazon’s HQ2. However, a talent shortage was an obstacle for St. Louis in its HQ2 bid.

According to a report by the Belleville News-Democrat, Amazon officials recently told St. Louis leaders that a lack of a “blueprint for talent” was one of the reasons the e-commerce giant removed the city from the shortlist of candidates it’s considering to host HQ2.

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Amazon looking to create 50,000 jobs

While inviting bids from cities interested in hosting HQ2, Amazon outlined several requirements—with a stable supply of talent being a central requirement. Amazon is looking to create as many as 50,000 high-paying jobs at its second headquarters, and it seeks a wide pool of talent to create these jobs. Amazon closed 2017 with 566,000 employees worldwide.

A $5 billion investment

Amazon (AMZN) is planning to invest more than $5.0 billion to develop HQ2. As Amazon looks to build its second corporate headquarters, Apple is planning to build a 20,000-employee corporate campus in the US as part of its pledge to inject $350.0 billion into the US economy in the next five years. Microsoft (MSFT) also revealed a plan to upgrade its corporate headquarters in Redmond, Washington, which appears to be part of its initiative to appeal to young talent.

Facebook (FB), Twitter (TWTR), and Google (GOOGL) have also taken steps such as creating communal workspaces in their efforts to appeal to young workers as tech companies compete for top-notch talent.

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