Amazon is scrapping its plans to build a corporate campus in New York City after caving in to mounting opposition from local residents and politicians.

The announcement comes as New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio were pushing hard to bring the online retail giant in with the prospect of creating over 40,000 jobs in the next 20 years with an average salary of $150,000.

However, the move met heavy opposition after the proposed deal would include over $3 billion in government subsidies amid budget cuts. Furthermore, residents feared that rising rents as a result of Amazon’s arrival would drive out longtime residents in the process and an influx of new workers would exacerbate over crowdedness in the subway systems.

“Amazon’s decision to withdraw from New York is no doubt a blow to our local economy,” said Julie Samuels, executive director at Tech: NYC. “New York City is today one of the most dynamic tech hubs in the world, but there is no guarantee we will maintain this status in the future, which makes this news so disappointing.”

 Related: Amazon’s Acquisition of Eero Solidifies Move to Smart Home Concept

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