BREXIT: Major Companies Are Leaving London And The UK

Source:http://www.businessfondue.com/

Unless you have been living under some rock for the past couple of years, you have probably heard of a term Brexit. You should know that this is a shorthand for Britain’s exit from the EU.

What does Brexit actually mean?

Is it just a word or something that can change our lives to better or to worse? This “Brexit” is happening because of a referendum that was held on Thursday, 23 June 2016. Over 70% of Brits turned out for this referendum and “leave” won by 51.9%. The biggest single reason for wanting to leave the EU was “The principle that decisions about the UK should be taken in the UK.” – Simple as that. The citizens of the UK wanted sovereignty. The other reason is a more efficient control over immigration and the borders of the UK.

And when will Brexit actually happen? No one really knows. It has now been delayed until as late as 31 October even though it was originally meant to take place on 29 March. This event is going to affect everyone in the UK, finances and consumer rights. This is why it takes so long to actually happen.

Is Brexit safe?

I will try to explain this with practical info. Earlier this month I wanted to move my couch to a vacation home in Margate. I called Amazing Moves from London, which services I had been using a couple of years ago, but they didn’t have any vehicles available. That was the case with every company I called. They were all too busy moving all sorts of companies out of London.

It is already happening. And for many months the idea that businesses might leave the UK because of Brexit was dismissed as something they called “Project Fear”.

Companies are leaving the UK, but nobody is citing Brexit as a reason for leaving. Nevertheless, as the Brexit comes nearer, more and more companies are choosing to move their HQs, making job cuts, or completely leaving the UK.

Car-Makers are leaving

Ford announced plans to shut down one of its UK plants back in June after they had made a decision to close their Bridgend manufacturing plant. They blamed a number of different problems including the electrification of cars and the need to change their business plans.

Around 2,000 people will lose their jobs because of this.

Honda will also move forward on that same note. They announced the closure of their Swindon plant in 2021, which will again lead to the loss of 3,500 jobs. And they are really sorry about that.

A British technology company called Dyson which designs and manufactures household appliances announced that they will be moving their HQ to Singapore. However, their officials insist that no jobs will be affected in their current HQ in Malmesbury in Wiltshire.

Source:https://www.unionsyndicale.eu/

The ones that have decided to “Jump Ship” are:

 Panasonic – They are moving their European HQ from the UK to The Netherlands. Allegedly, they want to limit tax issues linked to Brexit.

 Sony – This is another Japanese company that is also moving its EU HQ from the UK to The Netherlands. They want to avoid customs issues tied to Brexit, but they also insist that they won’t shift their personnel from the UK and won’t cut any jobs.

 Nissan, Jaguar Land Rover, and BMW – This car giant that is responsible for over third of Britain’s cars last year warned about the complications that could be caused by the Brexit. Jaguar and BMW are also afraid of the “No Deal” scenario.

 Lloyd’s of London – an insurance and reinsurance market located in London, UK, announced in May that they made a deal with the National Bank of Belgium to establish an insurance company in Brussels.

AirBus – This Company is also afraid of the “no deal” scenario, and they have warned they could leave the UK after the Brexit. The company employs over 14,000 people at 25 sites in the UK.

 Unilever – This is a consumer goods giant that also chose not to take any risks with Brexit. They chose Rotterdam over London for their HQ – however, they claim that the decision was not made because of Brexit.

Muji – This is a Japanese retailer that is rumored to be moving its EU HQ from the United Kingdom to Germany.

Goldman Sachs – This is the bank that is set to at least double its workforce in Frankfurt.

Barclays – Small number of roles will move from London to Europe.

 And the list will go on, believe me.

Brexit

The main problem is the uncertainty. Even 3 years after the result of the 2016 referendum businesses are unable to plan properly for the future because nothing is certain about the Brexit. The Chief executive of the Airbus Tom Enders warned about the possible changes inside the firm and said: “We along with many of our peers have repeatedly called for clarity, but we still have no idea what is really going on here.”

So, problem lies in the fact that no country has ever left the European Union until now. Previously only member territories have left the EU upon gaining their independence. Thus, if the UK succeeds to withdraw from the EU, it will be the first independent country to have ever left the union. Because of this, no one really knows how to deal with this situation or what to expect from the future.

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