Greggs to shut four factories and cut 740 jobs
British bakery brand Greggs plans to close four manufacturing plants and cut 740 jobs while confirming retail stores remain unaffected.
Stock photo for illustration only, not from the actual event
- Greggs plans to shut down four manufacturing facilities in the UK
- The proposals will impact and cut a total of 740 jobs
- All 2,796 retail shops and stores will remain open and unaffected
- The restructuring and manufacturing shifts will take two and a half years
High street bakery brand Greggs has announced proposals to close four of its manufacturing plants and cut 740 jobs across the United Kingdom. Company executives stated that the move is designed to improve operational efficiency and ensure the business adapts to evolving customer expectations.
The sites slated for closure include manufacturing operations at North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, Seaham in County Durham, and Enfield in Greater London, though the London site will continue running as a distribution hub. Manufacturing operations at its Treforest site in Wales will also be affected but will likewise transition into a distribution center.
Stock photo for illustration only, not from the actual event
The company, headquartered in Newcastle, emphasized that its retail shops across the country will not be affected by the proposed changes. Greggs currently employs 33,000 people in the UK, with the majority working in its stores, operating a total estate of 2,796 shops after opening 95 new locations and closing 38 this year.
The overhaul will take place over the next two and a half years with manufacturing processes being relocated. The range of products made at Clydesmill in Glasgow and Manchester will be reduced, production of tinned bread at Gosforth will cease, and certain products will be sourced from specialized suppliers instead.
"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."
Roisin Currie, Chief Executive of Greggs
Chief Executive Roisin Currie noted that the company needs to evolve alongside changing customer expectations.
Stock photo for illustration only, not from the actual event
Staff consultations are set to begin shortly, with the firm emphasizing that no final decisions have been made yet. The shake-up is projected to cost about £60 million, including disruption expenses and redundancy payouts, but is expected to generate approximately £20 million in savings across the 2028 and 2029 financial years.
Large retail restructuring initiatives often highlight how companies are striving to streamline supply chains amidst inflationary pressures and changing consumer habits. Greggs reported that its sales grew by 7.7% in the three months leading up to September 26 compared to the previous year, demonstrating resilience against challenging market conditions as household finances face continued tightening.
Source: BBC Business
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