**Greggs to Close Four Factories and Cut 740 Jobs Amid Restructuring Plans**
High street bakery chain Greggs has announced a significant restructuring plan that involves the closure of four manufacturing factories and the elimination of approximately 740 jobs. The affected sites are located in North Lakes near Penrith, Cumbria; Pettigrews in Kelso, Scotland; Seaham in County Durham; and Enfield, Greater London. Despite these closures, Greggs has confirmed that distribution operations at the Enfield site will continue.
The company, headquartered in Newcastle, stated that while manufacturing operations at its Treforest site in Wales will also be impacted, it will remain operational as a distribution center. The proposed changes are part of a broader strategy to enhance efficiency and adapt to evolving customer expectations.
Greggs Chief Executive Roisin Currie emphasized the necessity of these adjustments, stating, "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."
The restructuring process is expected to unfold over the next two-and-a-half years, with some manufacturing processes being relocated. Additionally, the company plans to reduce the range of products produced at its Clydesmill site in Glasgow and Manchester and will cease production of tinned bread at the Gosforth location. Certain products will now be sourced from specialized suppliers.
While the company employs around 33,000 individuals across the UK, the majority of whom work in retail stores, the impending job cuts have raised concerns. A consultation process with affected staff is set to begin soon, although Greggs has stated that "no final decisions" have been made regarding the layoffs.
The financial implications of the restructuring are significant, with the company estimating costs of approximately £60 million, which includes disruption expenses and redundancy payments. However, Greggs anticipates that the changes will lead to savings of about £20 million over the financial years 2028 and 2029.
Despite these challenges, Greggs reported a 7.7% increase in sales for the three months ending September 26, compared to the same period the previous year. This growth reflects the company's resilience amid "challenging market conditions," as consumer finances continue to face pressure. The firm projects a "modestly improved outcome" for the year 2026, attributing this optimism to positive trading and ongoing cost control measures.
In terms of expansion, Greggs has opened 95 new shops and closed 38 in the current year, bringing its total number of locations to 2,796. The company remains committed to maintaining its retail presence despite the manufacturing changes.
As the consultation process begins, stakeholders will be closely monitoring the developments at Greggs, particularly how the company navigates these changes while striving to meet customer expectations and maintain its position in the competitive food industry.