Amazon.Com Inc (AMZN  ) has encountered delays in expanding its workforce at its Northern Virginia headquarters, a project initially presented as a significant economic boost.

The 22-story towers at HQ2, equipped with luxurious amenities, house 8,000 employees, departing from the frugality that defined Amazon under Jeff Bezos.

Elegant designs, team suites, and a visitor center at HQ2 depict an Amazon moving away from its origins of makeshift desks and self-service coffee.

Despite a commitment to adding 25,000 new jobs by the end of the decade, Amazon's workforce in Arlington experienced a reduction last year, attributed to company-wide layoffs and a hiring slowdown.

Holly Sullivan, Amazon's vice president of worldwide economic development, cited global hiring reductions as impacting the company's growth projections for HQ2 but reassured that Amazon remains committed to its 25,000-job target, now extended to 2038, the Washington Post reports.

Amazon, which required employees to return to the office three days a week, opened two office towers in Crystal City with capacity for twice the current staff but has paused further construction.

Despite these challenges, Amazon continues to pursue its headquarters project as a long-term investment, with 1,000 positions currently open.

However, the reduction in job creation could decrease the financial incentives Amazon receives from Virginia based on the company's fulfillment of its employment commitments.

State officials, who had offered up to $750 million in subsidies for the project, designed the incentives to require Amazon to maintain new jobs for at least five years.

Amazon's recent hiring report suggests a smaller payout from Virginia than initially expected, reflecting the unforeseen challenges and adjustments facing the company and its HQ2 project.

Prior reports indicated Amazon Web Services (AWS) plans to commit another $35 billion by 2040 to expanding data centers in Virginia, which would create 1,000 jobs.

Amazon stock gained over 78% in the last 12 months. Investors can gain exposure to the stock via SPDR Select Sector Fund - Consumer Discretionary (XLY  ) and Vanguard Consumer Discretion ETF (VCR  ).

Price Action: AMZN shares traded higher by 0.32% at $183.91 on the last check Wednesday.