Unstable Market Forces MNC’s To Relook Their Operation Status in UK

MNC in UK post brexit

Following the decision by Britain to leave the European Union, multinationals worldwide have announced that their brands are looking into implementing certain changes so that they do not hinder future production levels. In a move that is set to see thousands of people, hard working citizens of the United Kingdom, risk possibilities of unemployment. The reason being these companies have decided to relocate their British offices or operation after the result of the EU referendum outcome or result.


Multinational corporations such as Airbus, Toyota, and Ford all said that they would look into their level of investment in the United Kingdom after the country choose to leave the European Union through a majority vote. The decision to move the location of company operations from Britain is because of the uncertainty and the unpredictability in the market.


Companies have also gone a notch higher to issue profit changes. For example, the owner of the British Airways said that it would experience decreased yearly profits. He went ahead to state that such a wrong prediction is because of the current volatility in the United Kingdom’s market. More to this Mike Ashley’s Sports director cautioned that the fall in the currency value of the pound against that of the dollar would cause an increase amounting to resources required to import goods. As if this is not enough, a South African country bidding to acquire pound land similarly warned that it would not subject itself to a deal.

Multinationals such as United States Bank JP Morgan cautioned that between one thousand and four thousand jobs in the United Kingdom would move in other regions across the world. The cause of this retrenchment or relocation is mostly because of the sharp decrease in the world’s stock markets after the confirmation of the referendum result. For example, a company such as FTSE 100 was down by eight percent at one point in the day before ending at 3 percent. It was not shocking to note that house builders and banks suffered profoundly in the fall of their stock. 


Companies, however, want to assure the public that all will be done within the accordance of the law.

They have vowed to remain competitive at all costs and as such, Ford announced that they had made no changes to the companies’ policy and legal framework regarding work personnel. The car maker went further to add that the brand will only perform in agreement with the aim of achieving sustainable profitability and maintaining a competitive European market. Interestingly, Ford employs over fourteen thousand people in the United Kingdom.

Two British manufacturers that are Rolls-Royse and Jaguar Land Rover announced that they would represent the wishes of their workforces. In a statement that many would say that it is a show of true patriotism, a JLR spokesperson reiterated the wishes of the company to continue its operations in Britain. The company is a British enterprise with a strong foundation in the world of manufacturing and investment decisions.

MNC in UK post brexit

Image Courtesy – Goldman Sachs


Multinationals in the European Region and especially those in Britain are looking to take caution in handling their operations in the United Kingdom. Those who have offices or branches in other countries such as Japan, for example, Toyota, have shifted their operations away from the region. These companies have a fear of the unstable market situation. Those who have a huge manufacturing base in Britain for example JLR, have decided to stick around and take the risk.

Share This: