Since the UK voted to leave the EU last June, several companies and financial services have said they will leave the UK because of Brexit or are considering doing so.
The international head-hunting firm, Odgers Berndtson, has announced it will be opening an office in Dublin. This will give the firm prime pick of the companies moving their business to the Irish capital following Brexit.
Timeline for Brexit
- February 13, 2019
- February 12, 2019
Odgers Berndtson’s chief executive, Kester Scrope, said:
“The growth of our business depends on being able to provide a high level of support to major global clients as they address some of the very significant challenges posed by Brexit.”
Here are some of the other companies moving out of the UK because of Brexit
1. Deutsche Bank
Earlier this year, rumours circulated that Deutsche Bank could move 4,000 jobs out of the UK, nearly half of its UK workforce, over concerns it won’t be able to conduct business throughout Europe once the UK leaves the union.
According to people familiar with the matter, the bank could start relocating jobs as early as next year, ahead of the March 2019 deadline for Brexit.
Speaking at a conference in Germany earlier this year, Deutsche’s chief regulatory officer Sylvie Matherat, hinted the bank could move jobs because of Brexit. She said:
“For front office people, if you want to deal with an EU client, you need to be based in the EU. Does it mean I have to move all the front office people to Germany or not? We’re speaking of 2,000 people.
“We really need clarity. We are the largest bank branch operating in the UK. We do have something like 9,000 people there, so I mean they [staff] do have real questions [including] where do I register my children for in the next two years at school? I mean that is a very concrete question.”
2. Barclays Bank
Barclays has chosen the Irish capital Dublin as its post-Brexit European hub.
The bank already has around 120 staff in the country but will expand this by at least 100 employees as it plans to protect its access to the European Union after the UK officially exits the bloc.
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It has reportedly agreed to rent bigger premises in the city so it can still service its EU clients.
Drinks giant Diageo has been criticised for moving its vodka production out of Scotland because of Brexit.
The company, which manufactures Smirnoff and Circo vodka, is reportedly shifting its production to Italy and US, which will lead to the loss of 105 roles at its plants in Fife and Glasgow.
The GMB union criticised the decision, with the Scottish organiser Lousie Gilmour telling Sky News:
“Over 100 skilled workers are now facing unemployment because Diageo are hedging their bets over Brexit – there is absolutely no getting away from this.”
The company responded by releasing a statement saying the UK’s decision to leave the European Union was a factor but the move reflects wider “global volatility” in its markets.
4. Games companies
Research by games industry trade body Ukie found that 40 percent of games companies based in the UK were considering relocating after the UK decided to leave the EU.
The main reason for this is concern that a loss in international talent from EU countries would create a skill shortage, with 57 percent of respondents saying they employed staff from member states across the union.
Ukie’s chief executive, Jo Twist, said:
“The triggering of Article 50 signals the beginning of the end of the uncertainty we’ve all been facing since the Referendum last June. Ukie will continue to work with government across departments to ensure the industry’s needs are met, particularly around global talent, data and investment in homegrown innovation and creativity.”
5. Goldman Sachs
Goldman was one of the first financial institutions to announce it was moving staff away from the UK. In February it decided to close some of its hedge fund operations in London and move the staff to New York.
As well, the chief executive of Goldman Sachs International, Richard Gnodde, said the bank was making contingency plans about other departments.
“We start with a significant European footprint, we are licensed with banks in Germany and in France. Over the next 18 months or so we are going to upgrade those facilities, we’ll be taking extra space in a number of them and be increasing our headcount and infrastructure around those facilities,” said Gnodde.
6. Lloyd’s of London
The world’s biggest specialist insurance market announced it would be seeking a new Brussels-based subsidiary the day after the UK prime minister Theresa May invoked Article 50, the official EU exit clause.
The company’s chief executive, Inga Beale, said:
“Brussels met the critical elements of providing a robust regulatory framework in a central European location, and will enable Lloyd’s to continue to provide specialist underwriting expertise to our customers.”
However, she maintained that the new office would be an additional base and less than 100 London jobs would be affected.
Tech giant Microsoft said the company was contemplating expanding its operations elsewhere in Europe because of Brexit.
The UK division’s government affairs manager Owen Larter, said:
“If all of a sudden there are huge import [tariffs] on server racks from China or from Eastern Europe, Bwhere a lot of them are actually assembled, that might change our investment decisions and perhaps we build out our data centres across other European countries.”
However, Microsoft has said the comments were not reflective of the company’s view saying it remains committed to the UK.
The costume and fancy dress supplier has been headquartered in Gainsborough and Leeds for the past 120 years, yet Smiffy’s director, Elliot Peckett, announced it would open a new head office in the Netherlands as a result of Brexit.
Peckett told the Independent that the EU is the company’s largest trading partner, with 40 percent of Smiffy’s sales going to the bloc.
“Smiffys have no choice but to protect our business by moving our headquarters to the EU. This will allow us to continue growing our trade to the EU, from within the single market,” said Peckett.