Reported by 2 sources

The short version

  • Greggs proposes closing four factories and cutting 740 jobs while maintaining its retail store network.
  • The restructuring aims to save £20 million annually by 2029 but will cost approximately £60 million upfront.
  • Union leaders express concern over job losses despite the company reporting a 3.4% rise in like-for-like sales.

Greggs, the prominent British bakery chain headquartered in Newcastle, has unveiled a significant restructuring plan that includes the closure of four manufacturing facilities and the elimination of 740 positions. The proposal marks a substantial shift in the company’s operational footprint, targeting production sites in North Lakes near Penrith, Cumbria; Pettigrews in Kelso, Scotland; Seaham in County Durham; and Enfield in Greater London. While these locations will cease manufacturing activities, the Enfield site will continue to function as a distribution hub, ensuring logistical continuity for the broader network.

In addition to the full closures, the Treforest facility in Wales will see its manufacturing operations wind down, though it too will remain active as a distribution center. The company also intends to scale back production at its Glasgow and Manchester sites and halt the manufacture of tinned bread at Gosforth entirely. Some product lines previously made in-house will instead be sourced from external specialist suppliers. This consolidation strategy is designed to streamline the supply chain, with changes expected to unfold over a period of two and a half years.

News Journal

Despite the reduction in manufacturing headcount, Greggs emphasized that its retail operations remain unaffected. The company reported robust performance in its store network, with like-for-like sales rising by 3.4% across managed locations. Overall revenue growth was further supported by the expansion of its physical presence, as the chain opened 95 new shops while closing 38 during the current fiscal year. This activity brings the total number of stores to 2,796, reflecting a continued commitment to retail expansion even as back-end operations contract.

Financial projections indicate that the restructuring will incur upfront costs of approximately £60 million, covering redundancy payments and operational disruption. However, management anticipates these investments will yield annual savings of around £20 million in the 2028 and 2029 financial years. Chief Executive Roisin Currie framed the changes as necessary evolution to align with shifting customer expectations and maintain competitive efficiency. She described the manufacturing and logistics network as a core strength that requires modernization to ensure long-term viability and service quality.

The announcement has drawn sharp criticism from labor representatives. Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union (BFAWU), expressed deep concern regarding the impact on employees and their communities. She highlighted the contradiction between the company’s strong financial performance and the decision to place jobs at risk. Woolley argued that workers have contributed significantly to the business’s success and questioned the necessity of cuts driven by efficiency goals when the enterprise is reportedly performing well.

Greggs noted that positive trading conditions and disciplined cost management have led to expectations of a modestly improved financial outcome for 2026. The company acknowledged challenging market conditions, including pressure on consumer finances, yet maintained that its retail strategy remains sound. Sales grew by 7.7% in the three months leading up to late September compared to the same period last year, suggesting resilience in demand despite broader economic headwinds affecting household budgets.

A formal consultation process with staff is scheduled to begin shortly, though the company clarified that no final decisions have been made regarding specific roles or timelines. The majority of Greggs’ 33,000 UK employees work in retail stores, meaning the direct impact on shop-floor workers appears limited under current proposals. However, the loss of manufacturing jobs in regions such as Cumbria, Scotland, and Wales could have localized economic repercussions, particularly in areas where these facilities are major employers.

The restructuring reflects a broader trend among high-street retailers seeking to optimize supply chains amid rising operational costs and changing consumer habits. By centralizing distribution and outsourcing certain product lines, Greggs aims to reduce complexity and improve agility. Whether this strategy will achieve its intended savings without compromising product quality or brand reputation remains to be seen as the consultation phase progresses and final plans are solidified.

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