Key facts
- Greggs plans to close four manufacturing sites and cut 740 jobs over the next two-and-a-half years.
- The company stated the closures are necessary for cost-efficient growth and to support its expansion strategy.
- The changes are expected to cost £60 million initially but save £20 million annually by 2028.
- Greggs' retail shops will not be affected by the proposed changes.
- A consultation with staff is expected to start soon, with no final decisions made yet.
UK bakery chain Greggs has announced plans to close four of its factories and cut 740 jobs over the next two-and-a-half years as part of a restructuring aimed at improving efficiency and supporting future growth. The manufacturing sites slated for closure are in North Lakes, Pettigrews, Seaham, and Enfield, though distribution operations will continue from Enfield and Treforest in Wales. Greggs stated that its retail shops would remain unaffected by these proposals.
The company indicated that the changes are intended to strengthen its manufacturing network and ensure it remains well-placed for the future. Production of certain items will be reduced at Glasgow and Manchester sites, and tinned bread production at Gosforth will cease, with some products to be sourced from external specialists. Greggs employs 33,000 people in the UK, primarily in its stores.
The shake-up is expected to incur costs of approximately £60 million, covering disruption and redundancy payments, but is projected to yield annual savings of about £20 million across the 2028 and 2029 financial years. Despite challenging market conditions and rising costs for wages, energy, and packaging, Greggs reported a 7.7% increase in sales for the three months ending September 26. The company opened 95 new shops and closed 38 year-to-date, bringing its total estate to 2,796 locations. Greggs anticipates a "modestly improved outcome" for 2026 due to positive trading and cost control measures.