Tyson Foods, which joins Caterpillar, Citadel, and Boeing, is the latest company to close its Chicago offices.
Wednesday’s announcement by the poultry producer was that it will bring together its corporate employees at its global Headquarters in Arkansas. This will result in the closing of three offices in Chicago, Downers Grove, Illinois and Dakota Dunes, South Dakota. The three offices house approximately 1,000 people. They will be moving in the early part of next year.
CEO Donnie King stated that bringing together our talented corporate team members and businesses under one roof opens up greater opportunities for sharing perspectives and ideas while also enabling us quickly solve problems and provide innovative products solutions that customers value.
Tyson’s move is another blow to Chicago’s image. McDonald’s, which has its headquarters in Chicago, has criticized the city’s crime record. Chris Kempczinski, CEO of McDonald’s, recently stated that crime is “seeping in every corner” of Chicago and that he’s often asked “What’s happening in Chicago?”
“We have violent crime in our restaurants… we’re experiencing homelessness in our restaurants.” He said that there are drug overdoses in Chicago’s restaurants last month at Chicago’s Economic Club. “So we see every day in our restaurants what’s happening in society.”
He stated that it was difficult to recruit people to work at the company headquarters. He also noted: “One of my favorite things I hear from our employees is… ‘I don’t think it’s safe to go downtown.’
McDonald’s stated that it will stay in Chicago, while other companies have been more open about why they are leaving. Tyson stated in an email to CNN that the move from Chicago was not related crime.
Boeing
(BA) stated in May that it was moving to Washington, DC. The company didn’t blame the crime. Analysts believe the company’s decision to leave Chicago for Washington, DC in May indicated that it is losing the commercial race to Airbus. They want to be seen as primarily a defense- and space contractor. Boeing
From its inception in 1916, the headquarters of (BA) were located in Seattle.
Caterpillar and Citadel announced recent moves from Chicago to other locations in Illinois.
Kellogg, however, stated in June that Chicago will be the home of its newly formed plant-based and cereal food companies.
Inflation has been a major problem for Tyson. Recent statements by Tyson indicated that “demand for chicken remains extremely strong” while the demand for higher-priced beef cuts has slowed. The average sales price of chicken increased during the most recent quarter, while pork and beef prices fell due to consumers refusing to buy certain premium cuts.
Tyson stated that while meat consumption remains strong, consumers are switching between meats due to inflation. The company plans to offer lower-priced products and increase the size of its packages for customers looking for value. Tyson shares are down 25% for the year.
This report was contributed by Nathaniel Meyersohn, CNN Business.