Accounting and consulting firm McGladrey, LLP, has moved its corporate headquarters from Minneapolis to Chicago.
The headquarters transition is effective immediately, McGladrey spokeswoman Terri Andrews said in a Thursday phone interview.
The move will not result in any job cuts in the Twin Cities, where the firm actually intends to boost its employee count during the coming year, Andrews said.
There will be no transfer of employees or changes to the company’s local operations, Andrews said. The tangible change is that the company will legally be headquartered in Chicago, and it will denote the new headquarters in marketing and legal materials.
Several factors contributed to the company’s decision to move its headquarters, according to Andrews. First, Chicago is home to the firm’s largest office, where it employs roughly 1,000. The firm’s international services business is also headquartered there.
The company’s leadership team is scattered throughout the country; for example, Chief Financial Officer Doug Opheim will remain in Minnesota following the headquarters transition.
But Managing Partner and CEO Joe Adams, as well as some other high-ranking executives, were already based in Chicago, making it a prime headquarters location, Andrews said.
In a press release issued by Chicago Mayor Rahm Emanuel, McGladrey said it intends to hire between 300 and 500 new employees in Chicago during the next five years “to meet the increasing needs of the firm’s Chicago-based clients and to support the firm’s corporate operations.”
The firm did not receive any economic incentives from the city or Illinois to encourage the move, according to Andrews.
Adams said in a statement that Chicago is “a global business hub” that “provides an outstanding climate to fuel McGladrey’s future growth domestically and abroad.”
“McGladrey is uniquely focused on serving middle-market businesses, which are the backbone of the global economy, and Chicago is a central location that provides convenient access to our many U.S. offices, our clients, and the global locations where they operate,” Adams added.
McGladrey is Minnesota’s second-largest accounting firm based on certified public accountants in the state, of whom there are 243. The firm employs a total of about 650 in Minnesota, including 500 in Minneapolis.
The remaining 150 Minnesota employees work out of offices in Duluth, Rochester, and Bloomington—although the Bloomington office will soon be closed, and employees there will be relocated to the firm’s Minneapolis office. That consolidation is unrelated to the headquarters move and was announced to affected employees earlier this year, Andrews said.
Nationwide, McGladrey operates 75 U.S. offices and employs about 6,500. The firm bills itself as the nation’s fifth-largest provider of assurance, tax, and consulting services, and its headquarters move makes it the largest certified public accounting firm based in Chicago.