It turns out that Alphabet Inc (NASDAQ:GOOG) and Amazon.com, Inc. (NASDAQ:AMZN) are quietly planning abandoning the U.K. if its citizens support Brexit in the referendum. However, these companies have refused to publicly say how their operations in Europe would be impacted if the U.K. pulls out of the European Union economic bloc.
Alphabet Inc (NASDAQ:GOOG) and Amazon are some of the U.S. tech giants who consider London a key gateway into other EU markets. They believe that U.K.’s influence as a member of the economic bloc can help them expand in the region rapidly. As such, these companies are likely to lose appetite for fresh investment in the U.K. if the country is not part of the bloc they are targeting.
If Brexit vote prevails in the referendum, people with insider knowledge hint that Alphabet and Amazon are likely to channel their new investments for Europe to Berlin and Paris. But that would significantly adversely impact the U.K. economy.
New offices in the UK
Reports that Alphabet Inc (NASDAQ:GOOG) and Amazon are planning to reduce fresh investment in the U.K. if the country leaves the EU comes at a time when both have revealed plans to set up new offices the U.K. Since 2013, Google has had plans to build a new U.K. headquarters that would accommodate about 5,000 employees. But the company has recently slowed on those plans, perhaps to see which way the Brexit vote goes.
Amazon has also had plans for a new U.K. office that would have the capacity to house 5,000 workers. The office is expected to be operational by the end of 2017. But it remains unknown whether Amazon would relocate all those employees if the U.K. ditches EU.
Investors warning to UK
But Alphabet Inc (NASDAQ:GOOG) and Amazon are not the only ones threatening to turn their back on the U.K. if the country’s citizens choose Brexit. Global financial services company HSBC Holdings plc (ADR) (NYSE:HSBC) said it would relocate at least 1,000 jobs form the U.K. to France if the former pulls out of the EU. Several other companies have made similar warnings to the U.K.