JPMorgan Chase & Co. (JPM - Free Report) has initiated relocation plans for ‘several dozen’ of employees at its U.K. offices in a bid to ensure business continuity after Brexit. The news was first reported by Reuters in a memo that also outlined a plan to expand the bank’s presence in other European cities such as Paris, Madrid and Milan.
Most of the employees who will be relocating presently serve in client-facing and risk management-related roles at the company’s investment banking and asset management divisions, and have been asked to relocate before Brexit occurs in March 2019. Til now, it is expected that the bank will move its employees and expand operations in Frankfurt, Luxembourg and Dublin, where it already has banking licenses.
The memo, signed by Daniel Pinto, chief executive of JPMorgan’s Corporate & Investment Bank and Mary Erdoes, chief executive of its Asset & Wealth Management division, also states that the bank will likely add hundreds of positions to the European Union-based cities, and the hiring process for the key management positions have already begun.
Further, the memo specified that till Brexit negotiations attain finality, the size of JP Morgan’s team in EU cannot be determined on a conclusive basis. It also stated that the team had been working to ensure that disruption remained at a minimum level for the clients as well as employees post Brexit.
Notably, in March 2018, Reuters conducted a survey of firms employing workers in bulk in international finance, according to which around 5,000 jobs will have to be moved out of Britain to adapt to any adverse scenario resulting from Brexit. Many global banks like Barclays (BCS - Free Report) , Bank of America Corp. (BAC - Free Report) and Goldman Sachs (GS - Free Report) have already initiated relocation plans.
In Annual Report 2017, Jamie Dimon, JPMorgan’s Chairman and CEO had stated that around 300-400 jobs shall be required to be moved out of Europe within a short term as the company remains prepared for Brexit, while the company’s long-term plans remain uncertain until negotiations concerning Brexit come to an end. Also, the company will likely modify some of its legal entities to be able to conduct business smoothly after Brexit.
JPMorgan’s shares have gained 10.6% in the past year compared with the industry’s growth of 4.2%.
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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