Relocating staff following the UK’s vote to leave the EU could cost firms £50,000 per employee, meaning JP Morgan’s potential costs could be up to £200 million.
JP Morgan said it could move between 1,000 and 4,000 jobs may have to move abroad in the event of a Brexit.
US consultancy and technology firm, Synechron, estimated the cost using figures for relocation, hiring, redundancy costs, new building and rent costs.
On the day the Brexit results were disclosed, JP Morgan CEO Jamie Dimon said “In the months ahead we may need to make changes to our European legal entity structure and the location of some roles.”
Business consultant at Synechron Tim Cuddeford, explained banks, like JP Morgan, are having to consider where to best locate certain parts of their workforce.
Cuddeford added: “Financial ‘passporting’ is vital to the work many banks undertake across Europe and they will have to think carefully about which city within the EU their interests and their clients’ interests will be best served.”
The UK’s access to the single market through ‘passporting’ is considered invaluable to many major banking institutions.
The analysis suggests the cost could be higher depending on infrastructure and the talent pool available.
JP Morgan Brexit moves could cost £200m
The cost to relocate just one member of staff following Brexit estimated at £50,000, according to in-depth analysis.