Goldman Sachs and Morgan Stanley confirms London jobs will move to Europe

Senior Goldman Sachs Group Inc. and Morgan Stanley executives said they’re preparing to shift staff and operations from London to elsewhere in the European Union as Prime Minister Theresa May sets up the U.K.’s exit from the bloc.

A day after May’s office announced she will open two years of divorce talks with the EU on March 29, Richard Gnodde, co-head of investment banking at Goldman Sachs, told CNBC on Tuesday that his bank will initially relocate hundreds of London-based employees to expand other offices after the split.

Questioned on whether the European expansion would reflect the moving of jobs out of London or the hiring of new personnel on the continent, Richard Gnodde confirmed that the plans would reflect two strategies.

"It'll be a combination of things. We'll hire people inside of Europe itself and there will be some movement," he clarified, explaining that the upcoming period will see investment in infrastructure, people, systems and technology. Goldman Sachs also confirmed that this movement away from London would not necessarily result in a net reduction of workers in the U.K.

Goldman Sachs is considering making Frankfurt its hub inside the EU and could move as many as 1,000 employees, including traders and senior managers, a person familiar with the matter has said.

CNBC

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