Greggs plans four factory closures, 740 jobs at risk

Greggs is proposing to close four manufacturing sites across the UK, putting around 740 jobs at risk as the bakery chain restructures its production network, according to media reports.

The proposed closures affect sites at North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, Seaham in County Durham and Enfield in Greater London. 

Distribution operations would continue from Enfield, while Greggs' Treforest site in Wales would also retain its distribution function despite changes to manufacturing operations.

The company said the proposals are expected to deliver around £20m in savings across the 2028 and 2029 financial years, with the changes to be implemented over the next two and a half years.

Manufacturing shake-up

Greggs said parts of its manufacturing processes would be relocated as part of the restructuring. The range of products made at its Clydesmill site in Glasgow and Manchester facility would be reduced, while production of tinned bread at Gosforth would stop.

The company also plans to source some products from specialist suppliers.

The proposals do not affect Greggs' retail shops. The company said like-for-like sales had continued to grow across its managed stores.

Chief executive Roisin Currie said, "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."

Union raises concerns

The Bakers, Food and Allied Workers Union (BFAWU) said it was concerned about the potential impact on employees and local communities.

General secretary Sarah Woolley said the union was "deeply concerned" about the announcement.

She added, "Our immediate priority is our members, their jobs, their families and the communities that could be affected by these proposals."

Woolley also pointed to Greggs' trading performance, saying the business had made clear it continued to "perform strongly".

She said, "Against that backdrop, our members will understandably be asking why their jobs and livelihoods should now be put at risk in the name of efficiency and future progression."

£60m restructuring cost

The overall shake-up is expected to cost Greggs around £60m, including disruption costs and redundancy payments.

The company said a staff consultation is expected to begin shortly and that "no final decisions" had been made.

Greggs currently employs around 33,000 people in the UK, with the majority working across its retail estate.

The proposed changes come as the company reports continued sales growth despite pressure on consumer finances. Retail sales increased 7.7% in the three months to 26 September compared with the same period last year, while like-for-like sales across managed stores rose 3.4%.

Greggs said positive trading and continued cost control meant it expected a "modestly improved outcome" for 2026.

The bakery chain has opened 95 new shops and closed 38 so far this year, taking its total estate to 2,796 locations.

The proposals have also prompted concern in communities where Greggs' manufacturing sites are major employers.

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