Sound off... with everyone working from home these days; will we see office closures? E.g. will the Chicago office close or downsize?
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Tyson’s SG&A was always very loose; especially for T&A... when travel was permitted. Why do you need 4 planes in their fleet?
Eventually Tyson will want all their employees/ talent down in Arkansas; cheaper market, insurance and cost of living. Also, Tyson did not take advantage of all of the synergies that were present when Tyson squired Hillshire Brands.
It wouldn’t surprise me. Doing some quick research, it looks like it is a class B building with 247,716 sq ft. The average asking office rent per sq ft for class B buildings in West loop is $31.29/sqft/yr. That comes to $7.75MM per year in rent. Is the talent pool in Chicago worth that price tag? Time will tell, especially if remote work becomes a permanent thing and the talent pool opens up to include national and international remote workers.
By the way, SG&A for the company is under review.
Would only make sense. I bet the rent, taxes and utilities are expensive for being in Chicago. SG&A would go down if they downsize to a smaller platform.