The current financial turmoil for tech companies may finally be affecting a major project in San Jose as Google has indicated the Downtown West transit village development could be delayed. Following a recent pullback in real estate leases and a layoff announcement, Google now says it is reassessing the timeline of the project.

The Bay Area News Group reports that Google is examining the best move forward with Downtown West, but still insists they are committed to the project. The downtown San Jose area has been hit pretty hard by pandemic-related business shutdowns and remote work trends, so a lengthy delay in an energizing development like Downtown West would certainly cast a pall in the region’s recovery.

City officials have expressed confidence that the development will continue, including San Jose Mayor Matt Mahan who says the rationale for Google to invest in Downtown West is “stronger than ever.”  Google has already begun demolition of some buildings and was planning to break ground later this year.