First Brexit employment casualties

[Stopyourhavering]

dd graduated this week, happy times.....phoned this morning to say that 2 of her friends, who had also graduated ( business/law degrees) and been offered jobs had been telephoned by their prospective employers to say that because of Brxit, they were now basing their headquarters in Berlin rather than UK and would no longer be employing them......I fear this is just the start....I am so angry and upset for our youth. My ds and dd2 are so angry and feel betrayed....I wish 16 &17 year olds had been given a vote as I feel they had a better handle on the repercussions of Brexit

The plan is to relocate to Italy
Good luck with that.
If they had done the smallest bit of homework they would have found out that Italians are also demanding an indyref - and were watching the outcome of this to press on. Not only that, but according to the Independent, they are the next Euro country (well, vying with France as to who gets their first)to need a massive bailout - their banking sector is in dire straits - and the populace blame the EU.
Just watch the stampeded to the exit.

I work for an international company in a country where I don't speak the local language. As long as English is the company language you're fine - what else do you need?

I do not deny they exist, everyone knows someone who works in English in a foreign country. But it can't be relied upon. Too many British just assume they can get a job in Europe in English. Many international firms require you to speak the native language or to speak more than one language. And even if you can work in English precedence may be given who also speak the native language.

Quite apart from the fact that living in a country in which you do not speak the language creates its own problems.

If they had done the smallest bit of homework they would have found out that Italians are also demanding an indyref - and were watching the outcome of this to press on

Italy desperately needs the EU due to their economic situation. They may well need a bail out, and they will get it. I have a house there - while there is grumbling about the EU there is not the antipathy to it as there is here.

If they had done the smallest bit of homework

I can assure you they very much did, hence the plan! Specific location doesn't matter - they just have to be in the EU. That is the case for a lot of companies. We will see an exodus.

Businesses will not accept a 2 year+ period of uncertainty. They will move and they will move quickly.

When it is put to the vote you may be surprised - like those here who were shy brexiteers, not everyone trumpets their views from the rooftops.

Specific location doesn't matter - they just have to be in the EU
They sound astonishingly naïve. they'd better get used to moving a lot. or move to Germany, they'll be the last before the lights are switched off.

Any company that makes hiring decisions based on 1 day of panic is very shortsighted.

Oh my.

Very few companies that do business with EU trading partners or markets will have been unaware of the referendum, LarryGrylls. Companies make contingency plans. Many eventualities can be modeled or predicted.

The idea that they would wait until the day after the referendum and then join some sort of panic is BS of the highest order.

Like Bumblebzz I am beginning to detect a woeful lack of understanding of how business happens and an associated insight of how this vote came about.

Needing to locate within the the EU is not naive, it sensible.

There are always people who use a vote as a protest, even if they don't know exactly what they're protesting about, or they're protesting to the wrong people. Many people who voted leave here, turn out have intended two fingers to the Tories - apparently failing to consider that the Tories remain in power, now unfettered by the EU.

So - Italy will take note from Britain and Greece and not risk putting such an important issue to the popular vote.

Like Bumblebzz I am beginning to detect a woeful lack of understanding of how business happens and an associated insight of how this vote came about

And therefore the consequences of the vote.

Companies make contingency plans. Many eventualities can be modeled or predicted.

Even if they don't have a clear view of how things will pan out, the very first thing they will do is to start acting in a risk-averse way - this means reducing investment and putting a freeze in hiring.

I've been working in large manufacturing businesses for over a quarter of a century and in uncertain times, the very first thing that companies will do is stop hiring.

Oh, and no-one failed to plan for this. We hoped it wouldn't happen, it looked like it wouldn't happen.
It did, and we have reacted. It bad for the economy, it's bad for our employees, but we have to protect the business.

"Business continues as was for a minimum of 2 years."

You wish Has business continued as usual yesterday? Was the Pound's jump off a cliff not enough of a clue for you about the troubles ahead?

"Any company that makes hiring decisions based on 1 day of panic is very shortsighted"

Bless So your understanding is that large corporations, multinational companies, global banks etc who hire smart, driven, highly educated people to conceive and implement strategy just make decisions on a whim?

What... They knew about this referendum months ago but made NO contingency plans, did NOT consult lawyers & tax advisors, did NOT model both scenarios, and did NOT consider different European cities to move to way in advance?

They just woke up yesterday morning and... panicked?

And therefore the consequences of the vote

Yes - I'm beginning to understand why the economic arguments didn't win people over (they clearly have no idea how business works).

In my company, we have all been asked to cut down our days to 4 days a week or there will be redundancies.

I work in the property industry.

Projects have tailed off in the last few months in the run up to Brexit. Clients have been cautious for the past few months.

And JPMorgan's 'statement is the opposite of 'reassuring'.

Only an absolute raving lunatic would shut down a successful car factory on the basis of unknowns...The factory is open, it remains open, I believe it exports around two thirds of its production to Europe
Only an absolute raving lunatic would keep a car factory open in a country that has just put itself in danger of no longer being able to export to its largest market.

Really, we have been here before with the 50% tax and a few hedges relocated, many coming back with their tails between their legs. [Larry]
Yes, to the UK, still part of the EU, still with all the benefits of EU membership. All of which will no longer exist in a short time.

London will not relinquish its grip on finance easily, if at all.
London can weather the storm in other words.
And yet, London voted Remain, for reasons that must have been to do with the Moon or the alignment of the stars, or something else that has nothing whatsoever to do with fear that this could be catastrophic.

mamamea Sat 25-Jun-16 18:17:10
'"Leave voters really need to take their fingers out of their ears and start listening to the reality of a leave vote."
There's no reality, there's just a lot of twats on social media mouthing off.
Nobody knows a goddamn thing"'
And you don't see how that is the problem here?
Do you understand how credit ratings work?

By contrast, business sees stability in EU states, and English spoken in Ireland. (And in Scotland, when Scotland votes for Independence).

Just to add to this, a relative of mine has just told me that on Friday she received an email at work informing her that the German company she works for will be pulling out of the UK within the next two years and will not be transferring staff.

Leavers - I am thoroughly sickened by your selfish, bigoted, racist, ill-informed and downright fucking THICK actions. Fuck the lot of you. You're wrecking lives and ruining this country BECAUSE YOU ARE STUPID.

Someone I know who works in the City doesn't think many big companies will move headquarters. So much goes on between the US and London, and English is the common language used - even other European banks use English. Also a lot of seriously rich banker types (including Europeans) prefer living in London to any other major European city, indeed it's hard to coax them to move. Keeping the top guys happy matters, it seems.

Mind you, this is just one person's opinion, and I may not have expressed it very well. Just thought I'd say. Hope it's true, anyway, as it's a bit encouraging, and this has been a horrible couple of days. I'm still pretty shocked and stunned.

Oh, my God.... la ,la, la, it won't happen la, la, la.... it can't happen that fast la, la, la.....

I work for a company with less than a 100 staff, and 5 people in our management team and WE had contingency plans, which we put into effect on Friday morning. That includes a hiring freeze.

We're looking at losing our EU work for our biggest client, because it's very, very likely that when our contracts come up for renewal later this year they won't be willing to sign a three year deal with a company who might not be able to complete it. They'd be daft to, frankly, when they don't have to take the gamble.

Worse, that client likes having single suppliers for services, which might just mean that when we lose the EU contract, we risk losing all of it. If that happens, we'll go under.

This assumes that the client themselves doesn't suffer, which given half their business is manufacture and transport of very, very, very recognisable name foodstuffs into the EU, is by no means guaranteed. The company hq after all is in France. Why wouldn't they shut and relocate?

To add to that, the devaluation of the pound on Friday meant our profit on a 150,000 pound contract is in doubt as the major product on the quote is made in Germany and traded in Euro. No profit means no pay rises, no training, no expansion, no investment and no recruitment.

This isn't speculation, it's happening. We're planning and acting for the worst case because that's all that might be between us and closure with the loss of all jobs.

Now, if we're planning and acting, small as we are, why on Earth would companies much older and larger and with millions more on the line not be? They are, and they will and its the lower end of the market that, in the end, will suffer.

As for that letter.... funding will continue until 2020 or end of contract which ever is sooner.... well, since current plans don't see us out of the EU until late 2018 at the earlient and EU funding will continue until we leave, they just promised precisely nothing and people took it as a reason to vote Leave.

Prawnofthepatriarchy thats bollocks to be blunt. The City has been gearing itself up for this for ages- for instance in order to operate as a Bank you can be a Bank in any EU state and are therefore passport to be counted as a Bank everywhere in the EU. iF you are a Bank in a Non-EU country you are not passported. so pre Thursday to do banking activities in say the nerherlands, or Germany a company could just operate a bank in the UK. Post Thursday this is unlikely to work.
Add on questions about where Euro clearing can occur, what can happen to clearing house, stock exchanges- not to mention the significant european professionals working in the City - its an absolute nightmare potentially.
Common language is irrelevant - there will be sufficient english speakers wherever they go- i've heard the irish are quite fluent

Scrapping new grad hires is something that happens more often than people realise. In the year my son graduated quite a few grads in his subject who had done internships and had job offers had them cancelled shortly before starting due to market variations

Sorry it's bollocks and you are probably right.

But the guy I spoke to said keeping top level staff and their spouses happy was surprisingly important. They're pretty pampered. And they strongly prefer London for houses, schools, shopping, theatre, Henley, Ascot, Glyndebourne. The spouses don't normally work or speak more than one language. Dublin isn't big enough or glamorous enough, it seems. He works with these people, and knows of what he speaks.

DH (not City, not finance) had to cancel 5 projects on Friday because the pound devaluation meant they were no longer economical. There are parts of the supply chain outside the UK. Short term it's manageable but if those sort of projects can't happen long term then about half their staff will have to go. I

People forget that a lot of what we make here relies on some parts or aspects being done or brought in from other countries, which is where the low pound really hurts.

That "successful car factory" is 43.4% owned by Renault, and the French government has already made noises about shifting production to France.

Link to Guardian article

Sunderland may well have voted for Christmas.

prawn that may well be true for the most senior managers - I can well believe it, actually, as I work for a company which basically has a London office only because some board members live in London. But you can locate some senior management in London while moving the rank and file elsewhere.