One of the world’s largest food companies announced plans to move Chicago, Illinois, employees to corporate headquarters in Springdale, Arkansas. The move is scheduled for early 2023, according to a corporate statement.
About 1,000 Tyson Foods employees will be affected by the consolidation, according to a report in the Lincoln Journal Star. The consolidation follows a 2020 Tyson Foods force reduction that laid off approximately 500 Chicago and Arkansas employees.
Citadel, Boeing and Caterpillar have also announced plans to relocate their headquarters from Chicago in 2022.
The Daily Wire further reported:
Tyson Foods announced last week that all employees in the Chicago area would be relocated, rendering the meat and poultry company one of multiple businesses to pull operations from the Windy City in recent months.
Beginning next year, Tyson staffers will relocate from Chicago and Dakota Dunes, South Dakota, toward the firm’s corporate headquarters in Springdale, Arkansas, which will receive upgrades designed to enhance worker creativity and collaboration.
“Bringing our talented corporate team members and businesses together under one roof unlocks greater opportunities to share perspectives and ideas, while also enabling us to act quickly to solve problems and provide the innovative products solutions that our customers deserve and value,” Tyson CEO Donnie King explained in a press release.
Tyson, which employs 137,000 people worldwide, is one of several noteworthy companies to leave the Chicago area this year. Construction machinery maker Caterpillar and airplane manufacturer Boeing are respectively moving to Irving, Texas, and Arlington, Virginia.
“We believe it’s in the best strategic interest of the company to make this move, which supports Caterpillar’s strategy for profitable growth as we help our customers build a better, more sustainable world,” Caterpillar CEO Jim Umpleby said in a statement.
According to a 2021 study from the Tax Foundation, the city of Chicago boasts the second-highest tax burden among large metropolitan areas in the United States, with residents paying a combined state and local tax rate of 10.25%. The organization’s index for state business taxes placed Illinois in the bottom quintile for corporate tax burdens in 2021. When lawmakers raised the Illinois corporate income tax rate from 7.3% to 9.5% in 2011, officials were forced to cut $235 million in deals to prevent Sears and the Chicago Mercantile Exchange from leaving the state.
The office of Illinois Governor J.B. Pritzker (D) has nevertheless insisted that “countless companies” are staying in Chicago. “We will continue to welcome those businesses — including Kellogg, which just this week announced it is moving its largest headquarters to Illinois — and support emerging industries that are already creating good jobs and investing billions in Illinois, like data centers, electric vehicles and quantum computing,” a spokeswoman said earlier this year.
Scroll down to leave a comment and share your thoughts.