Greggs Announces Closure of Four Factories and 740 Job Cuts

The popular British high street bakery chain Greggs has revealed plans to close four of its manufacturing facilities, resulting in the loss of 740 jobs. The proposed closures affect sites located at North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, Seaham in County Durham, and Enfield in Greater London. While manufacturing operations will cease at these locations, distribution activities will continue at the Enfield site.

Additionally, the company indicated that while production output at its Treforest facility in Wales will be impacted, the site will remain operational as a distribution center. The restructuring is scheduled to unfold over a period of two and a half years. As part of the changes, product ranges manufactured at Greggs’ Clydesmill Glasgow and Manchester sites will be scaled back, and bread production at Gosforth will be halted. Some items will instead be sourced from external specialist suppliers.

Greggs, which is headquartered in Newcastle, emphasized that the retail side of the business would not be affected by these adjustments. The company reported that like-for-like sales increased across its managed stores. A union representative, Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union (BFAWU), expressed deep concern regarding the announcement. She highlighted the immediate priority of supporting members, their families, and affected communities, noting that Greggs itself acknowledged the business continues to perform strongly.

Woolley pointed out that workers have played a significant role in the company’s success, questioning why jobs should be at risk for the sake of efficiency. In response, Greggs CEO Roisin Currie stated that the firm must evolve alongside changing customer expectations. She described the manufacturing and logistics network as a key strength and argued that the proposals are designed to enhance efficiency and secure the company’s future while maintaining the quality and service customers expect.

Greggs currently employs approximately 33,000 people in the UK, with the vast majority working in its stores. The company clarified that no final decisions have been made yet, and staff consultations are expected to begin soon. The restructuring is anticipated to cost the firm around £60 million, covering disruption and redundancy payments, but is projected to save approximately £20 million in the 2028 and 2029 financial years.

Financially, Greggs reported positive trading results, attributing them to continued cost control. Like-for-like sales grew by 3.4% across managed stores, bolstered by the opening of new locations. The company opened 95 new shops and closed 38 in the year to date, bringing its total estate to 2,796 stores. Sales growth reached 7.7% in the three months leading up to September 26, despite challenging market conditions and pressure on consumer finances.