As part of its strategy to prepare for Brexit and continue conducting business in the European Union (EU), Barclays (BCS - Free Report) has initiated relocation. The bank is moving around 40 to 50 investment banking jobs to Frankfurt. This news was first reported by Reuters.
Barclays has already started internal discussions with the affected staff regarding the process of shifting the jobs to Frankfurt, with the majority to be filled in by fresh hiring. The bank had previously announced its plan to move between 150 and 200 jobs outside of the U.K.
The Brexit referendum has given rise to an uncertain economic and political environment for banks. Hence, banks are now gearing up by moving jobs outside of the U.K. Further, in March 2018, Reuters conducted a survey of firms employing workers in bulk in international finance, according to which around 5,000 jobs will be moved out of Britain to accommodate any adverse scenarios resulting from Brexit.
Notably, Paris, Frankfurt, and Dublin seem to be the most preferred choices for banks for making such transitions. Apart from Barclays, many other global banks, including Bank of America Corporation (BAC - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) and HSBC Holdings (HSBC - Free Report) are also making similar moves.
Barclays has been taking steps to expand its business by re-entering different markets. However, given the bank’s large-scale presence in the U.K., uncertainties regarding the impact of Brexit will likely have an adverse impact on its profitability. Also, its core operating performance is unsatisfactory.
Barclays’ shares have declined 10% in the past six months compared with the industry’s fall of 16.4% during the same period.
Currently, Barclays carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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