Amazon has abandoned plans for a new headquarters site in New York City, citing opposition from local leaders angry at the huge subsidies being offered to one of the world's most successful companies.

It can be recalled that the company had promised the sprawling complex in the borough of Queens would create 25,000 new jobs in exchange for nearly $3 billion in state and city incentives.

The company said, “After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens. For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term.”

The statement further said that 70% of New Yorkers support the company’s plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City.

The company said that they are disappointed to have reached this conclusion. There are currently over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.

"We do not intend to reopen the HQ2 search at this time. We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada, said the statement.”