Boeing is moving its headquarters from Chicago to Arlington, Va., a sign that the aerospace giant is leaning into its military wing and positioning itself better to navigate the political quagmire.
The move, first reported by The Wall Street Journal, comes as Boeing struggles to shed financial burdens from the 737 Max, the suffocating effect of the pandemic on travel and fallout from severed ties with Russia. The company reported a loss of $1.2 billion in the first quarter. Its stock is down 25% since the start of the year.
The company insisted it would “maintain a meaningful presence” in Chicago and the surrounding area despite the move. Boeing also plans to develop a research and technology hub in the region “to harness and attract engineering and technical capabilities,” according to the statement released by the company.
Here is the full press release of the company:
Boeing announced today that its Arlington, Virginia campus just outside Washington, D.C. will serve as the company’s global headquarters. The aerospace and defence firm’s employees in the region support various corporate functions and specialize in advanced aeroplane development and autonomous systems. In addition to designating Northern Virginia as its new headquarters, Boeing plans to develop a research & technology hub in the area to harness and attract engineering and technical capabilities
“We are excited to build on our foundation here in Northern Virginia. 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 Boeing President and Chief Executive Officer Dave Calhoun.
Boeing will maintain a significant presence at its Chicago location and the surrounding region.
“We greatly appreciate our continuing relationships in Chicago and throughout Illinois. We look forward to maintaining a strong presence in the city and the state,” said Calhoun.
“We also want to especially thank Governor Youngkin for his partnership, and Senator Warner for his support as we worked through the process.”
Over the past two years, Boeing has implemented flexible and virtual solutions that have enabled the company to reduce its office space needs. At its Chicago office, less office space will be required for the employees who will continue to be based there. Boeing will adapt and modernize the workspace to better support future work requirements.
“In today’s business environment, we have adopted a flexible work strategy in parts of our company and are taking steps to be more efficient within a reduced footprint. This helps us channel investments toward our critical manufacturing and engineering facilities and training resources,” said Calhoun.
As part of its effort to tap into engineering and technology talent across the U.S and around the world, Boeing plans to establish a research and technology hub in Northern Virginia. The hub will focus on developing innovations in the areas of cyber security, autonomous operations, quantum sciences and software and systems engineering.
“The future of Boeing is digital,” said Greg Hyslop, Boeing’s chief engineer and executive vice president of Engineering, Test and Technology. “Focusing our R&D and talent development in areas that support digital innovation will fuel the introduction of cutting-edge capabilities. This new hub in Northern Virginia will follow the successful implementation of this technology strategy in other regions.”
As the nation’s largest exporter, Boeing employs more than 140,000 people and is hiring as the commercial market recovers and the company invests in production, innovation and product development. The company’s three business units will continue to be based at their current headquarters, which include:
In addition to the company’s operations, Boeing works with more than 12,000 businesses supporting more than one million supplier jobs across the United States and located in every state. Globally, the company has operations in more than 65 countries.
As a leading global aerospace company, Boeing develops, manufactures and services commercial aeroplanes, defence products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity.
This post was published on 6 May 2022 00:03
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