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Rolls-Royce Is Looking For a Cheaper London HQ

  • Premises near Buckingham Palace too pricey, CEO tells staff
  • Chief operating officer to go after eliminating his own role
A Rolls-Royce Trent 1000 aircraft engine, produced by Rolls-Royce Holdings Plc.

A Rolls-Royce Trent 1000 aircraft engine, produced by Rolls-Royce Holdings Plc.

Photographer: Simon Dawson/Bloomberg
Updated on

Rolls-Royce Holdings Plc plans to quit its headquarters in one of London’s swankiest districts for cheaper offices as the company seeks to bring down long-term expenses and cover the more immediate costs of fixing a faulty jet-engine model.

Rolls-Royce needs a “smaller, more cost-effective London head-office location” than the current premises midway between the Houses of Parliament and Buckingham Palace, Chief Executive Officer Warren East said in a memo to staff obtained by Bloomberg. One option would be to move closer to the rail route to Derby, central England, the company’s main manufacturing site.