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Fears that Brexit vote would spark City jobs exodus becoming reality says report

Published 27/09/2016

A number of US banks have shifted their hiring for senior positions to locations such as Paris, DHR International said
A number of US banks have shifted their hiring for senior positions to locations such as Paris, DHR International said

Fears that the Brexit vote would spark an exodus of jobs from the City of London is fast becoming a reality, a report has revealed.

US banks have started shifting their hiring for banking roles from London to rival financial centres in Pairs and Frankfurt, according to executive recruitment firm DHR International.

Companies have also started accelerating cost-cutting plans made before the referendum result, including the process of moving London jobs to cities outside the UK.

Stephane Rambosson, managing partner of DHR International, said some firms were using Brexit as a "handy excuse for getting on [with] the unpleasant task of moving jobs outside London".

" Firms were already making plans to move middle and back office roles out of London in order to cut costs, but now Brexit has acted as a catalyst for radical surgery, providing firms with the impetus to act on these plans immediately."

He said businesses were eyeing cost savings of up to 40% by relocating roles to Warsaw, Lisbon and Dublin, while India, Malaysia and China were also set to benefit from a move to offshore more roles.

A report by The Boston Consulting Group (BCG) in the weeks after the referendum result said that u p to 80,000 jobs could be shifted out of London and in to rival financial centres across Europe in the wake of the Brexit vote, with Frankfurt trumpeted as the ''most attractive location'' among bankers.

JP Morgan, HSBC and Goldman Sachs all said prior to the vote that thousands of jobs in the City of London could be moved to the continent if Britain voted to leave the EU.

Mr Rambosson said the jobs warnings made by US banking giants were now being enforced.

"It's been widely speculated that US banks would shift their focus away from London post-Brexit but now this is definitely starting to happen.

"A number of US banks have shifted their hiring for senior positions in corporate and investment banking to locations such as Paris and Frankfurt as part of the first step in expanding their presence in mainland Europe."

In a review of the employment market in the first 100 days since Britain voted to leave the European Union, he said businesses and executives were now looking for jobs again after putting their search on hold.

He added that Brexit-break clauses - put in place by employers in the event of a Brexit vote - have largely been ignored.

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