High street bakery chain Greggs has unveiled plans to close four of its manufacturing facilities, a move that is expected to result in the loss of 740 jobs. The company, headquartered in Newcastle, confirmed that the proposed changes are intended to improve efficiency and keep the business evolving alongside customer expectations. Greggs emphasized that its retail shops remain unaffected by these proposals, which are scheduled to occur over the next two and a half years. But it will be a sad day if the factory does close because it’s been here for a very long time, he said: “Greggs is a very good business and apparently doing well.
Restructuring Impact and Factory Closures
- Sites closing: North Lakes in Cumbria, Pettigrews in Kelso, Seaham in County Durham, and Enfield in Greater London.
- Operational shifts: Distribution will continue at Enfield and Treforest, though manufacturing at the Welsh site will be impacted.
- Production changes: Manufacturing at Clydesmill in Glasgow and Manchester will be reduced, while tinned bread production at Gosforth will cease.
- Financial impact: The reorganization is anticipated to cost the firm roughly £60m, including redundancy and disruption expenses, with estimated savings of £20m across the 2028 and 2029 financial years.
Consultations with staff regarding the potential job cuts are expected to begin shortly, with the company noting that no final decisions have been finalized. The firm, which employs 33,000 people across the UK, currently operates 2,796 stores after opening 95 new locations and closing 38 this year. Some products would also be sourced from specialist suppliers.
Union and Community Response
The Bakers, Food and Allied Workers Union (BFAWU) expressed deep concern over the announcement. General Secretary Sarah Woolley stated that the union’s immediate priority is supporting members and their families who may be affected. She noted that while Greggs continues to perform strongly, employees are understandably questioning why their roles are at risk in the name of future efficiency.
Local reaction in the Scottish Borders has been somber, with Kelso councillor Euan Robson describing the potential loss of the Pettigrews factory as a shock to the community. He noted that the site has been a valued local employer for a long time, and the announcement creates a period of significant uncertainty for the local workforce.
Financial Performance
Despite the restructuring, Greggs reported a 7.7% increase in sales during the three months ending September 26, describing this as progress amid difficult market conditions and pressure on consumer finances. Given this positive trading performance and disciplined cost management, the company anticipates a modestly improved financial outcome for 2026. Chief Executive Roisin Currie affirmed that the manufacturing and logistics network remains a key strength, stating the current proposals aim to ensure the brand remains well-positioned for long-term growth.
Key Job Details
- With overall growth buoyed by the opening of new shops, like-for-like sales grew by 3.4% across its managed stores.
- According to woolley, Greggs’ workers had played a “huge part” in getting the company where it is.
