Greggs to cut 740 jobs and shut four factories in major overhaul
Bakery chain revamps manufacturing operations over two years
Greggs has announced it plans to close four factories, resulting in approximately 740 job losses, as part of an overhaul of its food manufacturing operations.
The high street bakery chain revealed that the proposed changes will unfold over the next two-and-a-half years and will involve relocating parts of its manufacturing processes.
Manufacturing sites at Enfield in Greater London, North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, and Seaham in County Durham are set to close, though Greggs intends to continue distribution operations from Enfield.
The changes will also affect manufacturing operations at the Treforest site in Wales, which will continue functioning as a distribution centre.
Additionally, Greggs plans to reduce the product range made at its Clydesmill Glasgow and Manchester locations and to cease tinned bread production at its Gosforth site.
Greggs assured that retail shops will remain unaffected by these changes.
The overhaul will cost the company around £60 million, including disruption and redundancy payments, but is projected to save £20 million across the 2028 and 2029 financial years.
A consultation process for affected workers and their union representatives will begin soon, with Greggs emphasising that "no final decisions have been made."
Greggs employs around 33,000 people across the UK, largely in its stores. Chief executive Roisin Currie stated the need for evolution to match changing consumer expectations in order to ensure the longevity and success of the business.
The announcement coincides with Greggs reporting a 7.7% sales growth for the three months to September 26, benefitting from new product launches and favourable weather conditions.
Positive trading and cost control have led the company to forecast a "modestly improved outcome" for 2026. Like-for-like sales across managed stores grew by 3.4%, buoyed by opening new shops.
So far this year, Greggs has opened 95 new shops and closed 38, bringing its total to 2,796 shops. It expects net new openings to range between 100 and 110 by year's end.
The company noted that current cost inflation is being managed and should stay around 2% for 2026. However, there are concerns about potential inflationary pressures in 2027 due to rising energy costs.
Following the news, shares in Greggs increased by 6.5% to 1,997p, marking their highest level in about two months.