Greggs to Close Four Factories, Cut 740 Jobs in Restructuring Plan
The bakery chain aims to improve efficiency and adapt to changing customer expectations over the next two-and-a-half years.
Greggs has announced plans to close four of its manufacturing sites and eliminate 740 jobs as part of a strategic overhaul aimed at enhancing efficiency and adapting to evolving customer demands. The proposed closures include factories in North Lakes near Penrith, Cumbria; Pettigrews in Kelso, Scotland; Seaham in County Durham; and Enfield in Greater London. Distribution operations will continue from the Enfield site.
The company's manufacturing operations at its Treforest site in Wales will also be impacted, though it will remain a distribution center. Greggs stated that its retail shops will not be affected by these changes. The restructuring is expected to unfold over the next two-and-a-half years, with some manufacturing processes being relocated.
Production changes will also occur at other locations. The range of products manufactured at the Clydesmill Glasgow and Manchester sites will be reduced, and the production of tinned bread at Gosforth will cease. Some products will also be sourced from specialist suppliers. The company employs 33,000 people in the UK, with the majority working in its stores.
Chief executive Roisin Currie emphasized the need for the company to "keep evolving alongside changing customer expectations." She added, "Greggs manufacturing and logistics network remains a key strength of the business, and these proposals are intended to strengthen our manufacturing network, improve efficiency and ensure we remain well placed for the future while continuing to deliver the quality, value and service our customers expect."
A consultation with affected staff is expected to commence shortly, and the company has indicated that no final decisions have been made. The shake-up is projected to cost the firm approximately £60 million, encompassing disruption costs and redundancy payments. However, the plans are anticipated to generate savings of about £20 million across the 2028 and 2029 financial years.
In the three months leading up to September 26, Greggs reported a 7.7% increase in sales compared to the same period last year. The company described this growth as progress amidst "challenging market conditions" and ongoing pressure on consumer finances. Positive trading performance and continued cost control measures lead Greggs to anticipate a "modestly improved outcome" for 2026. Year-to-date, Greggs has opened 95 new shops and closed 38, bringing its total estate to 2,796 locations.