JPMorgan JPM plans to move roughly 300 investment banking employees from the London office to other hubs in the European Union (EU) in case of a no-deal Brexit. It asked employees working in areas such as sales and risk to sign new contracts for relocating. This news was first reported by Bloomberg.
The concerned employees were informed about the possibility of relocation several months ago. Now, as the company is activating Brexit plans, employees will have to decide to shift or risk losing jobs. Nonetheless, per some sources, the bank plans to redeploy employees to other roles in an effort to avoid layoffs.
Earlier, JPMorgan revealed plans to move hundreds of employees in case of a no-deal Brexit. This was to ensure continued bloc trading, advisory and banking services to clients. It is building offices in Frankfurt, Paris and Luxembourg as part of its Brexit plan.
Britain’s exit from EU is now scheduled on May 22 if Prime Minister Theresa May's proposed withdrawal agreement receives approval from the parliament later this week. Otherwise, Britain may offer new exit plan until Apr 12 or decide to leave without a deal.
Apart from JPMorgan, several financial institutions are preparing for Brexit. In February 2019, Barclays BCS revealed plans to shift some equity and credit derivative sales jobs to Paris as it revamps operations ahead of Brexit. Likewise, Bank of America BAC and HSBC Holdings HSBC began relocating jobs to Paris.
JPMorgan’s shares have gained 2% in the past three months compared with the industry’s growth of 6.7%.
Currently, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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