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Goldman acquires space for 1,000 staff in Frankfurt as Brexit looms

Bank's plans to expand staff in Frankfurt stokes fears of severe job cuts in London.

By John Bakie john.bakie@strategic-i.com October 06, 2017 9:10 AM GMT

Goldman Sachs has leased office space in Frankfurt for up to 1,000 staff as it prepares for the impact of Brexit.

The bank currently employs 6,000 staff in the UK but it is unknown whether the new space in a Frankfurt tower block is intended to shift roles in London out to Germany.

Goldmans currently has only 200 staff in the city but its leasing of eight floors in a new development called Marienturm, which is due to be completed in late 2019, indicates it will substantially increase its presence after Brexit.

The news follows recent warnings from the industry, including the Bank of England’s deputy governor Sam Woods, that a failure to agree a transitional arrangement between the UK and EU by Christmas this year could see banks start planning to move out of the UK to avoid uncertainty about their future.

Goldman Sachs is also due to move its London staff to a new office space in March 2019, when Brexit is due to complete. There is speculation it could cut as many as half of its 6,000 London roles and sublet some space in its new building.