Greggs has proposed closing four manufacturing sites and cutting around 740 jobs as part of plans to restructure its production network and improve efficiency.
The bakery chain is proposing to close factories at North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, Seaham in County Durham and Enfield in Greater London. Distribution operations would continue at the Enfield site.
Manufacturing operations at Treforest in Wales would also be affected, although the site would remain open as a distribution centre.
The proposed changes would be implemented over the next two and a half years, with some manufacturing processes relocated elsewhere in the network. Greggs also plans to reduce the range of products made at its Clydesmill site in Glasgow and its Manchester facility, while production of tinned bread at Gosforth would stop. Some products would instead be sourced from specialist suppliers.
The company expects the changes to save around £20m across the 2028 and 2029 financial years. However, the wider restructuring is expected to cost approximately £60m, including disruption and redundancy payments.
Restructuring the manufacturing network
Greggs said the proposals were intended to strengthen its manufacturing network, improve efficiency and ensure the business could respond to changing customer expectations.
Chief executive Roisin Currie said the company needed to continue evolving while maintaining the quality, value and service customers expect.
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, Cheif Executive, Greggs
The company employs around 33,000 people across the UK, most of whom work in its shops. Greggs said the proposed changes would not affect its retail estate.
The plans come as the business continues to expand its shop network. Greggs opened 95 shops and closed 38 in the year to date, bringing its total estate to 2,796 locations.
Consultation to determine next steps
The proposals have raised concerns about the impact on employees and the communities surrounding the affected factories.
Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union, said the union was deeply concerned about the announcement, adding that its immediate priority was the jobs and livelihoods of members who could be affected.
Greggs said consultation with staff was expected to begin soon and that no final decisions had been made.
The company reported like-for-like sales growth of 3.4% across its managed shops, while total sales increased by 7.7% in the three months to 26 September compared with the same period a year earlier. It said positive trading and continued cost control meant it expected a modestly improved outcome for 2026.
The proposed restructuring would therefore reshape parts of Greggs’ manufacturing footprint while leaving its retail operations unaffected, subject to the outcome of the consultation process.
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