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02-07-2016, 06:18 AM
Vodafone is threatening to move UK jobs to the EU, and Goldman says banking jobs could go
Oscar Williams-Grut
Jun. 29, 2016, 7:48 AM 46,924 1
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Lloyd Blankfein, the chairman and CEO of Goldman Sachs. Mark Lennihan / AP/Press Association Images
The Brexit jobs exodus may be about to begin.
Vodafone is considering moving UK roles across the channel following Britain's vote to leave the European Union, and Goldman Sachs has warned that banks could do the same, according to reports.
The Times reports that Richard Gnodde, cohead of the Investment Banking Division of Goldman Sachs, wouldn't rule out moving some or all of the bank's 6,500 UK staff members to Europe when asked about Goldman's post-Brexit plans at the paper's CEO Summit on Tuesday.
Gnodde said "every outcome is possible," according to the report, and added: "If passporting was totally removed, we would have to adjust our footprint and where people were located."
Under the current arrangement, banks with a UK presence have the right to operate in any of the other countries in the 28-member EU bloc under single-market rules that allow them to "passport" their licence across the continent. Once the UK leaves the EU, these rights are likely to disappear, meaning banks will have to relocate if they want to continue operating across the continent.
A Goldman Sachs representative contacted Business Insider to say that Gnodde was speaking more generally about the banking industry rather than Goldman specifically. The person said in an emailed statement: "As we have already communicated to our employees, there is no immediate change to the way we conduct our business or where we conduct our business."
Goldman Sachs CEO and chairman Lloyd Blankfein also said in an emailed statement:
"We respect the decision of the British electorate and have been focused on planning for either referendum outcome for many months. Goldman Sachs has a long history of adapting to change, and we will work with relevant authorities as the terms of the exit become clear. Our primary focus, as always, remains serving our clients' needs."
While Gnodde's comments on Goldman's plans are far from concrete, the US ratings agency Fitch said in a note on Tuesday that it expected banks to "start strategically implementing parts of their contingency plans rather than wait for trade and service arrangements to be agreed."
JPMorgan has said it may need to move a quarter of its 16,000-member UK staff to the EU, and both HSBC and Morgan Stanley are believed to be planning to move 1,000 staff each to the EU, though Morgan Stanley denied recent reports. Other banks have announced possible moves too.
Away from banking, Vodafone is also threatening to move jobs out of the UK. The telecoms giant late on Tuesday said it could consider moving its headquarters out of the UK because a "very large majority of our 462 million customers, 108,000 employees, and 15,000 suppliers are based outside the UK."
According to the BBC, the company said in a statement: "The UK's membership of the European Union has been an important factor in the growth of a company such as Vodafone. Freedom of movement of people, capital, and goods are integral to the operation of any pan-European business as are single legal frameworks spanning all member states."
Vodafone says no firm decision has been made, as the framework of any potential Britain-EU trade deal is unclear. But if the company does end up relocating its headquarters, it could mean a huge number of job losses. Vodafone employs 13,000 across Newbury and London, according to the Financial Times.
[UPDATE: An earlier version of this article quoted a Times report that Goldman Sachs and Morgan Stanley had pre-rented office space in Frankfurt as an insurance policy. Goldman Sachs and Morgan Stanley have both denied this.]
Oscar Williams-Grut
Jun. 29, 2016, 7:48 AM 46,924 1
Lloyd Blankfein, the chairman and CEO of Goldman Sachs. Mark Lennihan / AP/Press Association Images
The Brexit jobs exodus may be about to begin.
Vodafone is considering moving UK roles across the channel following Britain's vote to leave the European Union, and Goldman Sachs has warned that banks could do the same, according to reports.
The Times reports that Richard Gnodde, cohead of the Investment Banking Division of Goldman Sachs, wouldn't rule out moving some or all of the bank's 6,500 UK staff members to Europe when asked about Goldman's post-Brexit plans at the paper's CEO Summit on Tuesday.
Gnodde said "every outcome is possible," according to the report, and added: "If passporting was totally removed, we would have to adjust our footprint and where people were located."
Under the current arrangement, banks with a UK presence have the right to operate in any of the other countries in the 28-member EU bloc under single-market rules that allow them to "passport" their licence across the continent. Once the UK leaves the EU, these rights are likely to disappear, meaning banks will have to relocate if they want to continue operating across the continent.
A Goldman Sachs representative contacted Business Insider to say that Gnodde was speaking more generally about the banking industry rather than Goldman specifically. The person said in an emailed statement: "As we have already communicated to our employees, there is no immediate change to the way we conduct our business or where we conduct our business."
Goldman Sachs CEO and chairman Lloyd Blankfein also said in an emailed statement:
"We respect the decision of the British electorate and have been focused on planning for either referendum outcome for many months. Goldman Sachs has a long history of adapting to change, and we will work with relevant authorities as the terms of the exit become clear. Our primary focus, as always, remains serving our clients' needs."
While Gnodde's comments on Goldman's plans are far from concrete, the US ratings agency Fitch said in a note on Tuesday that it expected banks to "start strategically implementing parts of their contingency plans rather than wait for trade and service arrangements to be agreed."
JPMorgan has said it may need to move a quarter of its 16,000-member UK staff to the EU, and both HSBC and Morgan Stanley are believed to be planning to move 1,000 staff each to the EU, though Morgan Stanley denied recent reports. Other banks have announced possible moves too.
Away from banking, Vodafone is also threatening to move jobs out of the UK. The telecoms giant late on Tuesday said it could consider moving its headquarters out of the UK because a "very large majority of our 462 million customers, 108,000 employees, and 15,000 suppliers are based outside the UK."
According to the BBC, the company said in a statement: "The UK's membership of the European Union has been an important factor in the growth of a company such as Vodafone. Freedom of movement of people, capital, and goods are integral to the operation of any pan-European business as are single legal frameworks spanning all member states."
Vodafone says no firm decision has been made, as the framework of any potential Britain-EU trade deal is unclear. But if the company does end up relocating its headquarters, it could mean a huge number of job losses. Vodafone employs 13,000 across Newbury and London, according to the Financial Times.
[UPDATE: An earlier version of this article quoted a Times report that Goldman Sachs and Morgan Stanley had pre-rented office space in Frankfurt as an insurance policy. Goldman Sachs and Morgan Stanley have both denied this.]