Greggs to cut around 740 jobs amid restructuring efforts in Cumbria and beyond
Four factories slated for closure as bakery chain streamlines operations
High street bakery chain Greggs has announced plans to close four manufacturing sites, resulting in approximately 740 job losses as part of a comprehensive restructuring effort across its food manufacturing operations.
The significant changes, slated to occur over the next two-and-a-half years, primarily affect sites in Enfield, Greater London; North Lakes near Penrith, Cumbria; Pettigrews in Kelso, Scotland; and Seaham, County Durham. While the Enfield location will continue as a distribution hub, the Treforest site in Wales faces impact but will persist as a distribution centre.
In addition to the closures, Greggs will reduce product ranges at its Clydesmill Glasgow and Manchester facilities and cease manufacturing tinned bread at Gosforth. The company plans to consolidate operations by sourcing certain products from specialist suppliers, with retail shops unaffected by the changes.
The restructuring process is estimated to cost around £60 million, encompassing disruption costs and redundancy payments. However, the company anticipates saving approximately £20 million during the 2028 and 2029 financial years.
Despite these challenges, Greggs reports a positive retail performance, with sales growing by 7.7% over the last three months compared to the previous year. This growth is attributed to successful product launches and favourable weather in late summer.
Encouragingly, like-for-like sales saw a 3.4% increase across managed stores, buoyed by 95 new shop openings and 38 closures, resulting in a net increase of 57 new outlets this year. The company projects the number of shops will rise to between 100 and 110 on a net basis by year-end.
While current cost inflation is deemed manageable at around 2% for 2026, Greggs warns of potential inflationary pressures in 2027, driven by rising energy costs.
The restructuring reflects Greggs' strategic efforts to adapt to challenging market conditions, as consumer finances remain under pressure, and demonstrates its dedication to maintaining long-term operational viability.