The real problem, for those who didn't bother to read the article, is that sales have tanked and are down 25%.
Relocating won't do jack for Dorchester. If they move to Iowa, sure they'll pay less in rent, but they won't be able to find as many editors, proofreaders or marketing staff, and will be isolated from the agents and critics and other networks that are critical to selling books.
Any possible "savings" will be blown by flying constantly to major cities and putting their people up in hotels, as well as costs associated with the move. Not to mention they'd lose huge numbers of staff. Would you move from New York City to Iowa to work for a company that lost 1/4 of its revenues in a single year? And can you imagine the level of disruption of cutting paper and moving and dealing with huge losses of revenue all at once?
Beyond switching to POD, eliminating returns is not an option for paper. If you tell distributors and bookstores you will no longer take returns, they won't take your books period.