Greggs to axe around 740 jobs and shut four factories

Greggs has said it plans to shut four factories with the loss of about 740 jobs as part of an overhaul of its food manufacturing operations.

The high street bakery chain said the proposed changes, which will take place over the next two-and-a-half years, will see it relocate parts of its manufacturing process.

It plans to close its manufacturing sites at Enfield Greater London, North Lakes near Penrith Cumbria, Pettigrews in Kelso, Scotland, and Seaham, County Durham. It will continue to run distribution operations from Enfield.

The proposals will also impact manufacturing operations at its Treforest site in Wales, but this will continue as a distribution centre for business.

Greggs also said it will reduce the range of products manufactured at its Clydesmill Glasgow and Manchester locations, as well stopping the manufacturing of tinned bread at Gosforth.

It said this will consolidate its manufacturing operations, with the firm set to source a small number of products from specialist suppliers.

Greggs retail shops will not be affected by the changes.

The shake-up will cost the firm around £60 million, including disruption costs and redundancy payments.

But it said the plans will save it around £20 million across the 2028 and 2029 financial years.

Greggs is to relocate parts of its manufacturing process (Gareth Fuller/PA)

PA Wire

It came as the retail business revealed that sales grew by 7.7% in the three months to September 26, compared with the same period a year earlier.

Trading improved across the quarter as Greggs benefited from product launches and “more settled weather” in August and September.

It said this represented progress in face of “challenging market conditions”, as consumer finances continue to come under pressure.

Like-for-like sales grew by 3.4% across its managed stores, with overall growth buoyed by the opening of new shops.

Greggs said it has opened 95 new shops and closed 38 in the year to date, taking its overall estate to 2,796 shops.

It means the company has had 57 net new openings, with predictions it will have between 100 and 110 shops on a net basis by the end of the year.

The retailer stressed that current cost inflation is “well managed” and likely to stay around 2% for 2026.

However, bosses warned that there are “signs of greater inflationary pressures in 2027” as higher energy costs feed through.