Greggs to axe 740 jobs as four factories close
Greggs outlines a £60m restructuring, shutting four sites and reshaping its manufacturing network while keeping retail stores untouched.
Greggs has announced a sweeping overhaul of its manufacturing network that will see around 740 jobs disappear and four factories closed, with the Treforest site in Wales among those affected.
The bakery chain plans to shut its Enfield plant in Greater London, the North Lakes facility near Penrith in Cumbria, the Pettigrews site in Kelso, Scotland, and the Seaham plant in County Durham.
While manufacturing will cease at Enfield, the company will retain the location for distribution activities, preserving a logistical foothold in the capital.
At Treforest, the manufacturing footprint will be reduced but the site will continue operating as a distribution centre for the business.
Greggs also intends to trim the product range produced at its Clydesmill plant in Glasgow and the Manchester facility, and will stop making tinned bread at its Gosforth site.
The changes are designed to consolidate production, with the firm planning to source a smaller selection of items from specialist external suppliers.
Retail outlets will not be directly impacted by the restructuring, meaning customers should see no change in shop operations.
The shake‑up is expected to cost the company roughly £60 million, covering disruption expenses and redundancy payments, but will generate savings of about £20 million in the 2028 and 2029 financial years.
Greggs says a consultation process with affected staff and their unions will begin shortly, although it stresses that no final decisions have been made.
With a workforce of approximately 33,000 people across the UK, the majority are employed in its high‑street stores.
“To continue building a successful business for the future, we must keep evolving alongside changing customer expectations.” We want to ensure Greggs remains a strong, sustainable business for decades to come.
In the three months to 26 September, Greggs reported a 7.7 % rise in sales compared with the same period a year earlier, signalling robust performance despite a challenging economic backdrop.
The uplift was bolstered by new product launches and what the company described as “more settled weather” in August and September.
Like‑for‑like sales across managed stores grew 3.4 %, buoyed by the opening of new shops.
During the year to date the chain opened 95 new outlets and closed 38, leaving a net gain of 57 and bringing the total estate to 2,796 stores.
Greggs expects to finish the year with between 100 and 110 net new openings, further expanding its high‑street presence.
Current cost inflation is being kept “well managed” at around 2 % for 2026, although the company warned of “signs of greater inflationary pressures in 2027” as energy costs rise.
Shares rose 6.5 % to 1,997p, their highest level in roughly two months, reflecting investor confidence in the restructuring plan.
Management anticipates a “modestly improved outcome” for the 2026 financial year, underpinned by the strong trading performance and disciplined cost control.