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Greggs, a well-known bakery chain, has revealed plans to close four of its manufacturing factories, resulting in the loss of 740 jobs. The sites affected include the North Lakes facility near Penrith in Cumbria, Pettigrews in Kelso, Scotland, Seaham in County Durham, and Enfield in Greater London. Although production will cease at Enfield, distribution activities will continue at this location. Additionally, the company’s Treforest site in Wales will see changes to its manufacturing operations but will remain operational as a distribution center.
The business, which is headquartered in Newcastle, emphasized that its retail stores will not be impacted by this restructuring. These adjustments are scheduled to unfold over the next two and a half years, with some manufacturing processes being relocated. At its Clydesmill facility in Glasgow and the Manchester site, the variety of products produced will be scaled back, and production of tinned bread at the Gosforth location will be discontinued. To supplement the reduced manufacturing output, a number of products will be sourced from specialized suppliers.
Greggs’ chief executive, Roisin Currie, commented on the changes, stating the necessity for the company to adapt to evolving consumer expectations. She explained, “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.” With a workforce of 33,000 employees across the UK, most of whom are in retail, the company has said that consultations with staff will begin soon, though no final decisions have been made to date.
Financially, the planned reorganization is expected to cost Greggs approximately £60 million, covering expenses related to disruption and redundancies. However, the company anticipates the changes will lead to savings of around £20 million during the 2028 and 2029 fiscal years. Despite the challenging economic environment impacting consumer spending, Greggs reported a 7.7% increase in retail sales in the three months ending September 26 compared to the previous year. The company also noted that positive trading results and continued cost management support expectations for a “modestly improved outcome” in 2026. To date, Greggs has opened 95 new shops and closed 38, bringing its total number of outlets to 2,796
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