Bakery chain Greggs plans to close four UK manufacturing sites, potentially impacting 740 jobs as part of a network restructuring over the next two and a half years.
Key facts
- •The factory closures are proposed for sites in North Lakes, Kelso, Seaham, and Enfield.
- •Greggs employs 33,000 people across the UK, with the majority working in retail stores.
- •The company expects the restructuring to cost £60 million while providing £20 million in annual savings by 2028.
- •Retail shops are excluded from the proposed closures.
- •Greggs reported a 7.7% sales increase in the most recent quarter.
Greggs has announced proposals to close four of its UK manufacturing factories, a move that could result in 740 job losses. The affected sites include locations in North Lakes, Kelso, Seaham, and Enfield, though the company intends to maintain distribution operations at the Enfield and Treforest sites. The bakery chain, headquartered in Newcastle, stated that its retail shops will not be affected by the proposed changes.
By the numbers
Restructuring and Financial Impact
The proposed changes are expected to take place over the next two-and-a-half years as the company relocates parts of its manufacturing processes and shifts some production to specialist suppliers. Greggs estimates the restructuring will cost approximately £60 million, covering redundancy payments and disruption costs, but expects the move to generate annual savings of £20 million by the 2028 and 2029 financial years. The company is set to begin a consultation period with trade unions and employee representatives.
Market Performance and Outlook
The announcement follows a period of sales growth for the company, which reported a 7.7% increase in sales for the three months ending September 26. Despite facing inflationary pressures and rising costs for energy, packaging, and wages, Greggs maintains a positive outlook for 2026. The company continues to expand its retail presence, having opened a net total of 57 new shops this year as part of its broader growth strategy.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business, Guardian Business.
