Financial giant, JP Morgan, announced that their company might move out finance workers from London if British government fails to make deals with the European Union. More so, Paris seems to rival other cities like Frankfurt and Dublin to accumulate lost workers from the Brexit rupture.
The Telegraph reported that JP Morgan has a total of 16,000 workers based in Canary Wharf, U.K., and it already warned Prime Minister Theresa May of its 4,000 employees to be transferred due to U.K’s recession from the EU. Chairman and chief executive of JP Morgan Chase, Jamie Dimon wishes that he could keep it all in London, yet he needs to consider the consequences ahead.
Dimon stated in his interview with FN London that he already planned actions ahead on the variety of outcomes on Brexit’s move, which is still uncertain these past few months. “If there is not a clear transitional period decided early in the process, where passporting rules still apply for a few years after negotiations, then we’d likely have to accelerate our timetable in complying with new rules,” he said.
The passporting rules allow insurance companies anywhere in Europe to invest in the U.K. market without restriction. With that, Dimon fears that they would lose their rights to market in Britain depending on the U.K. and the EU's negotiations.
In this case, Paris, Frankfurt, Dublin and Luxembourg are all awaiting for business and employee drops from London. The race for contending to get workers from London would already take place in February wherein Paris executives are bound to meet London financiers to conduct meetings about the matter. Moreover, according to Investopedia, besides JP Morgan’s move out plan is HSBC saying that they would also transfer as much as 1,000 employees.
Regardless of which among Europe cities would succeed, it seems as London’s market would undergo a massive severe change. Jobs & Hire previously reported about the U.K.’s risk of losing 15,000 workers due to automation.