New York CNN Business —
Tyson Foods is the latest company to close its Chicago area offices, joining the likes of Boeing, Caterpillar and Citadel.
The poultry producer said Wednesday it is bringing its company employees together at its global headquarters in Arkansas, resulting in the closure of three offices, including downtown Chicago, Downers Grove, Illinois and Dakota Dunes in South Dakota. About 1,000 employees work in the three offices and the relocations will start early next year.
“Bringing our talented team members and companies together under one roof opens up more opportunities to share perspectives and ideas, while also allowing us to act quickly to solve problems and provide the innovative product solutions our customers deserve and value.” CEO Donnie King said in a statement.
Tyson’s move is another blow to Chicago’s image. McDonald’s, which is headquartered there, criticized the city for the crime. CEO Chris Kempczinski recently said crime is “seeping into every corner of our city” and said he’s often asked “what’s going on in Chicago?”
“We have violent crime in our restaurants… we see problems with homelessness in our restaurants. We have drug overdoses in our restaurants,” he told the Economic Club of Chicago last month. “So every day in our restaurants we see what’s happening in society as a whole.”
He said it’s difficult to recruit people for the company’s headquarters, noting, “One of the things I hear from our employees [is] … ‘I’m not sure it’s safe to come to the center.’”
McDonald’s said it will remain in Chicago, but other companies leaving the city are less candid about their reasons. In an email to CNN, Tyson said the move from Chicago had nothing to do with crime.
Boeing (BA) said in May it would leave Chicago for Washington, DC. The company did not blame the crime. Analysts said the change indicates it has lost the commercial race to Airbus and wants to be seen as primarily a defense and space contractor. Boeing (BA) was based in Seattle from its inception in 1916 until 2001.
Caterpillar and Citadel also recently announced moves from Chicago to several locations outside of Illinois. Caterpillar was located in Deerfield, a suburb of the city.
However, Kellogg said in June that his newly formed grain and vegetable food businesses will be headquartered in Chicago.
Tyson has had a difficult year due to inflation. It recently said that “demand for chicken is extremely strong” while demand for its more expensive cuts of beef has declined. The average selling price for chicken rose during the last quarter, while the average price for beef and pork fell as consumers forgo some premium cuts.
Consumer demand for meat remained strong, Tyson said, but consumers are switching from meat due to inflation. The company plans to launch new, lower-cost options, as well as adding new larger pack sizes for value-seeking consumers. Tyson’s stock is down about 25% this year.
Update: This story has been updated to clarify that Caterpillar’s headquarters were located in a suburb of Chicago.
– Nathaniel Meyersohn of CNN Business contributed to this report.