CHICAGO, Illinois: Boeing has announced that it will relocate its global headquarters from Chicago to Arlington, Virginia, just outside the U.S. capital, Washington, D.C.
According to the company, it already has employees in Arlington's Crystal City District, who support various corporate functions and work on advanced airplane development and autonomous systems.
The company added that the move will bring it closer to key customers, such as the Pentagon and Department of Defense officials, as well as to federal regulators.
Boeing also plans to develop a research and technology hub to draw engineering and technical talent.
However, the company will not leave Chicago completely, as it will maintain a "significant presence."
In a news release, Boeing President and Chief Executive Officer Dave Calhoun said, "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."
According to Boeing, it has adopted "flexible and virtual solutions" to reduce the need for staff to go to the office and ensure less office space is needed.
"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," Calhoun added.
The company's news release did not specify how it will downsize its space in Chicago.
According to state sources, Boeing confirmed that the state's business climate was not a deciding factor in its decision to move its headquarters to Virginia.
In 2011, Boeing moved its world headquarters from Seattle to Chicago, and it also maintains a large hangar at the Gary/Chicago International Airport to house some of its corporate aircraft.
Boeing was founded in Seattle in 1916 by timber scion William Boeing, who initially built wooden seaplanes.