Barclays (LON:BARC) has started shifting 40 to 50 investment banking jobs from the UK to Frankfurt, Reuters has reported. The move comes as the blue-chip lender looks to prepare for doing business in the European Union after Britain leaves the bloc next year.
Barclays’ share price has fallen marginally into the red in today’s session, having given up 0.37 percent to 184.72p as of 08:38 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index having climbed marginally into positive territory and currently standing 0.12 percent higher at 7,556.68 points.
Barclays moves jobs to Frankfurt
A source with knowledge of the matter told Reuters yesterday that Barclays had begun shifting 40 to 50 investment banking jobs from Britain to Frankfurt. The source explained that the roles will technically be employed by the bank’s main European entity in Ireland, and form part of the 150-200 jobs which the blue-chip lender is transferring to that unit as it implements its Brexit plans.
The FTSE 100 group has reportedly begun discussing the process of shifting the jobs to Frankfurt with affected staff internally, with most of the positions likely to be filled by new hires rather than transfers.
Brexit preparations continue
Barclays’ move comes with lenders shifting jobs to the continent in preparation for a ‘worst case’ scenario in which the UK fails to secure a deal with the EU which would allow banks to continue operating in Europe from London. While Britain and the EU have secured a transition deal lasting until the end of 2020, it is not due to be ratified until October as part of a broader Brexit deal.
Reuters notes that bankers have said that this leaves them with no choice but to press on with transferring jobs.