Goldman Sachs is set to shift employees out of the City to Birmingham and hire hundreds of new staff, as the US banking giant makes a rare foray outside of London for its UK business to launch a new regional office.
The US banking giant will join rivals HSBC and Deutsche Bank by setting up a technology hub in the West Midlands city, and plans to open its new Birmingham office by the third quarter of 2021, it said in a statement.
Goldman will hire staff in Birmingham for its office, as well as transferring employees out of its London headquarters, it said in the statement. The bank will start the office by moving technology employees, but has plans to expand the business to several hundred across multiple divisions over the coming years, mostly hiring locally, according to a person familiar with the matter.
“Establishing a new office in Birmingham will diversify our UK footprint and give us access to a broad and deep talent pool in the local area. We see tremendous opportunity to enhance our UK presence and continue delivering for our global clients,” said Richard Gnodde, chief executive of Goldman Sachs International.
Large investment banks headquartered in the City have long moved functions out of London to other UK cities to access a pool of talent without having to pay such large salaries. Technology jobs, which have also increasingly been shifted to Eastern Europe in recent years, are a key target of these moves.
JPMorgan has around 2,000 technology staff based in its office in Glasgow, while Citigroup has over 2,700 people working in technology and operations functions in Belfast. Barclays also has around 2,500 staff within a Glasgow technology hub, and also has offices housing such expertise in Northampton and Knutsford in Cheshire.
Goldman, however, has largely maintained all of its UK employees in its £1.2bn Plumtree Court headquarters, into which it moved around 6,000 staff in 2019. It has a call centre for its retail banking operation, Marcus, in Milton Keynes.
However, Goldman’s strategy for cutting costs and bolstering profits across the organisation also comes from moving staff to so-called high value locations, where non revenue generating roles can be done for smaller salaries. It has around 7,000 staff within an operations and technology hub in Bengaluru in India, and has been growing its office in Salt Lake City, Utah. Goldman is also shifting asset management roles from New York to South Florida.
To contact the author of this story with feedback or news, email Paul Clarke