Goldman Sachs will relocate to a European city

The bank has reiterated that will continue to service its European customers regardless of its relocation efforts. Its services across Europe will not be affected by the move.

As part of its contingency plans, Goldman Sachs Europe’s CEO has disclosed that the firm will begin shifting hundreds of its staff out of London before any Brexit deal is struck.

“We are going to start to execute on those contingency plans,” said Richard Gnodde, the chief executive officer of Goldman Sachs International.

We went on to add, “For this first period, this is really the period as we put in place contingency plans, this is in the hundreds of people as opposed to anything greater than that”.

British Prime Minister, Theresa May has earlier stated that she will trigger Brexit proceedings on March 29 and in the process launch Britain on a course that could potentially reshape her geographical future.

A significant number of financial firms, who have roots in London, have warned that they would have to relocate jobs in case of a leave vote. Many financial institutions have started releasing details of their exodus once Britain confirmed it would be leaving Europe’s single bloc market.

Goldman Sachs has 6,000 employees in Britain for its European operations, which includes services for foreign exchange trading, brokering, market-making in securities and corporate finance.

Gnodde said the big question Goldman Sachs is staring at it whether the EU and Britain will agree to transitional arrangements as they hammer out the Brexit deal.

Many financial institutions fear the Brexit deal, stated to be one of the most complex negotiations Britain has ever faced since the end of WWII, could last more than the stipulated two years.

“We can’t bank on them so we have to have contingency plans and that’s what are going to start to execute on,” said Gnodde.

Contingency Plan

As part of its contingency plan, Goldman Sachs will initially start hiring people from Europe while it moves out of London. It will also invest in technology and infrastructure to ensure the continuity of its European operations, said Gnodde, while declining to state the next location the bank will shift to.

Goldman Sachs has banking licenses in France and Germany, as well as in several other European cities.

“In the next 18 months we will upgrade those facilities, we will be taking extra space in a number of them, and we will be increasing headcount and capability and infrastructure around those facilities,” said Gnodde.

He went on to add, “What our eventual footprint will look like depends on the outcome of negotiations and what we’re obliged to do because of them. Whatever the scenario, whatever the outcome, London will remain for us a very significant regional hub and a very significant global hub”.

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