United Kingdom: Diageo to close its central London office as part of cost cutting programme

Diageo, one of the largest producers of alcoholic drinks in the world, is in talks to close its central London office by the end of the year as part of its £100m cost cutting programme, the Telegraph reported on March, 20.

The company, whose brands include the world-renowned Guinness beer, confirmed last week that it was talking to "London-based staff" about closing the office in Henrietta Place, Westminster, where it has been based since 1996.

The closure will not result in any job losses, as Diageo plans to accommodate all London workers at its Park Royal office on the former Guinness brewery site.

A spokesman for Diageo said: "This plan makes more sense to us than running two offices in London and means we can house all workers in one building. Our lease on the Henrietta Place office has a break in 2010 giving us a perfect opportunity to do this."

The closure is part of Diageo's cost reduction programme, announced last month by chief executive Paul Walsh. The company was forced to lower forecasts for profit growth to between 4pc and 6pc for the year to the end of June, having previously targeted 7pc to 9pc growth.

It also imposed a hiring freeze last year as it looked to limit the number of job cuts it makes. Last month, Mr Walsh said the cuts were likely to run into "hundreds rather than thousands" globally.

25 March, 2009