new york
CNN Business
–
Tyson Foods is the latest company to close its Chicago-area offices, joining Boeing, Caterpillar and Citadel, among others.
The poultry company said Wednesday that it has consolidated its corporate staff at its global headquarters in Arkansas and closed three offices, including downtown Chicago, Downers Grove, Illinois and Dakota Dunes. About 1,000 employees work in the three offices and will begin to move to another location at the beginning of next year.
“Bringing our talented corporate team members and businesses together under one roof opens up great opportunities to exchange perspectives and ideas, and allows us to act quickly to solve problems and deliver innovative product solutions that our customers deserve and value,” said CEO Donnie King. King in resignation.
Tyson’s move will cause another blow to Chicago’s image. McDonald’s, which is headquartered there, has criticized the city for crime. CEO Chris Kempczynski said recently that crime is “infiltrating every corner of our city” and “What’s going on in Chicago?” He said that he is frequently asked.
“We have violent crimes in our restaurants … we’re seeing cases of homelessness in our restaurants. We have to deal with the drug overdoses that are happening in our restaurants,” he said at the Economic Club of Chicago last month. “So we see what’s happening in our restaurants, every day, in the community at large.”
He explained that it is difficult to get them to work at the company’s headquarters. [is] … ‘I’m not sure it’s safe to come downtown.’”
McDonald’s has said it will stay in Chicago, but other companies leaving the city have been tight-lipped about their reasons. In an email to CNN, Tyson said his departure from Chicago was not crime-related.
Boeing ( BA ) said in May it was moving from Chicago to Washington, D.C. The company did not blame the crime. Analysts say the move will see Airbus lose business competition and want to be seen primarily as a defense and aerospace contractor. Boeing (BA) was founded in Seattle from 1916 to 2001.
Caterpillar and Citadel also announced that they will be moving to different locations outside of Chicago, Illinois. Caterpillar was based in suburban Deerfield.
However, Kellogg announced in June that the newly formed grain and plant-based food company will be headquartered in Chicago.
Tyson has had a tough year due to inflation. Demand for high-priced beef cuts has been declining recently, saying “chicken demand is extremely strong.” Average selling prices for chicken rose in the latest quarter, while average prices for beef and pork fell as consumers cut back on some premium discounts.
Consumer demand for meat is strong, Tyson said, but due to rising prices, consumers are switching between meats. The company plans to launch new low-cost options as well as new larger package sizes for consumers looking for value. Tyson’s shares are down 25 percent for the year.
Update: This story was updated to include Caterpillar’s headquarters in the Chicago suburbs.
— CNN Business’ Nathaniel Meyerson contributed to this report.
