Centene Backs Out Of Under-Construction $1B East Coast HQ, Citing Remote Work
Healthcare company Centene has pulled out of its plans to move into the huge new headquarters building being developed for it in Charlotte, North Carolina.
The planned 800K SF headquarters building in University City would have served as an East Coast hub for the healthcare company, representing more than 3,000 jobs and a $1B investment, the Charlotte Business Journal reported.
“Since announcing our plans to establish an East Coast headquarters in Charlotte, North Carolina, there has been a fundamental shift in the way people want to work,” a Centene spokesperson said in a statement reported by local news station WBTV. “Today, almost 90% of our workforce is working fully remote or in a hybrid work environment, and workplace flexibility is essential to attracting and retaining our top talent.”
Centene has committed to completing the HQ and listing the facility, according to a statement from Charlotte City Council. The property is still under construction, but it is expected to be completed in the coming weeks. The company said it is in negotiations to find a new occupant, Axios reports.
The project was announced in 2020 as the result of a public-private partnership between Centene and several local government agencies. Centene had landed more than $50M in taxpayer funding as part of the deal — the city council approved $31.6M in grants, which were never paid, while the Mecklenburg County Commission agreed to provide $26M to the healthcare company that Centene is no longer eligible for, WBTV reported.
“The fact that such a record-setting incentives package can be left on the table is fascinating,” Mecklenburg County Commissioner and chair of the state’s Economic Development Committee Susan Rodriguez-McDowell told WBTV. “I am disappointed that a huge financial investment in the community has been lost, however, I feel optimistic that there will be another opportunity around the corner.”
The hub would have created 3,200 new jobs by 2032, making it the single-biggest jobs announcement in the state’s history, Axios previously reported. The public-private partnership would have boosted North Carolina’s overall economy by $29.5B over a 39-year period, according to one estimate.
The healthcare company first announced plans for the hub in July 2020 and broke ground a month later. The St. Louis-based Fortune 50 company's CEO, in touring the construction site last year, told media it was possible the 800K SF building would one day serve as the company's global headquarters.
Centene says it plans to maintain its current presence — approximately 1,700 employees statewide, including 700 positions in Charlotte — in North Carolina, WBTV reported.
Several other private-public partnerships have fallen through in the state in recent months, WBTV reported. Stock trading company Robinhood said last week that it would close its Charlotte office, reversing course after announcing plans to create just shy of 400 local jobs. British vehicle maker Arrival also laid off 35 employees in the same week.
