Boeing announced Thursday that it will relocate to Arlington, Virginia, from Chicago, where it has been based for more than two decades.
The choice of Arlington, on the other side of the Potomac River in Washington, underscores the importance of the federal government and its regulators to Boeing, a leading military contractor as well as a major manufacturer of commercial aircraft. The company relocated its defense, space and security unit to the Washington area of St. Louis in 2017.
“The region makes strategic sense for our global headquarters, given its proximity to our customers and stakeholders and its access to world-class engineering and technical talent,” said Dave Calhoun, Boeing’s chief executive, in a statement. The company, which did not give a timetable for its move, said it planned to set up a research and technology center in Northern Virginia.
This move follows the efforts of Boeing, the leading US exporter, to reduce costs. The company sold a number of office parks, warehouses and unused land last year, including the headquarters of its Seattle commercial aircraft for $ 100 million.
Boeing is trying to regain its position after a series of crises. Its best-selling passenger plane, the 737 Max, was shut down in 2019 after two of the planes crashed, killing 346 people. That same year, he fired Dennis Mullenburg as chief executive, saying he had failed to stabilize the company. Boeing later reached a $ 2.5 billion agreement with the Department of Justice for the failure of the 737 Max.
Last week, the company reported a loss of $ 1.5 billion in the first quarter, after experiencing low revenues, higher costs and delays.
“As the first quarter of 2022 brings new challenges to our world, industry and business, I am proud of our team and the steady progress we are making towards our key commitments,” Mr Calhoun said in a statement on the financial loss.
Boeing moved to a 36-story skyscraper in Chicago in 2001 after the city, Cook County and Illinois promised $ 60 million in tax breaks and incentives for 20 years.
In a statement Thursday, Boeing said it would maintain a “significant presence” in Chicago and the surrounding area, adding that the changes resulting from the pandemic allowed the company to reduce its office needs and instead invest in manufacturing and engineering.
Add Comment