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Google is now ending its contract with Lendlease, the main developer group of four campus sites. The projects that the developer is working on are yet to be completed, but Google is opting out of their services. News of this development hit the internet a few days ago after the developer made the announcement.
Google then came forth to confirm this on Thursday following the Lendlease announcement. Surprisingly, the termination of the contract between the two parties comes while four major partnership projects are in progress. The projects in question are the development of four future Google campus sites.
While this contract termination might be a surprise to some, signs that it would happen were already out in the open. The reason behind this termination of the Google and Lendlease developer contract is because of the need to cut costs. Over the past few months, Google has been embarking on a major cost-cutting move, and Lendlense is now feeling the effects of this move.
As Google moves to cut costs, it terminates its development contract with Lendlease
About four years ago, Lendlease, a construction specialist firm and project developer, got into a contract with Google. This contract allowed the firm to work with Google in helping to develop the tech giant’s landholdings. The partnership gave Lendlease 10 to 15 years to manage the redevelopment of Google’s campus projects.
Before the termination of this contract, Lendlease was working on a total of four Google projects. The projects are Downtown West, Moffett Park, Middlefield Park, and North Bayshore. Two of these projects are currently in progress, while the other two are yet to commence development.
Google had also laid off some Lendlease development employees and put a pin in some construction work. This action on the part of the tech giant came before the contract was terminated. During this period, a lot of people might have seen the prospect of the two firms terminating their contracts.
According to Lendlease Google conducted a review of their real estate investments. After this review, the tech giant concluded that the contract is “no longer mutually beneficial.” This review came as a result of Google trying to cut down on the cost of running its business.
Google still has plans to optimize its various real estate investments, such as its campuses. To accomplish this aim, the tech giant will need to partner with another construction specialist firm. In the future, information on Google’s advancements in this regard will become available.