Greggs to shut four factories and cut 740 jobs

Greggs, the UK high‑street bakery chain, announced it will close four of its manufacturing sites—North Lakes near Penrith, Cumbria; Pettigrews in Kelso, Scotland; Seaham in County Durham; and Enfield, Greater London—while retaining distribution operations at the Enfield location. The restructuring will also affect the Treforest plant in Wales, which will shift to a distribution centre. The company, which employs 33,000 people, says the closures and a reduction in product ranges at its Glasgow and Manchester factories, plus the cessation of tinned‑bread production at Gosforth, are intended to save about £20 million in the 2028‑29 financial years and to reposition its manufacturing network for changing customer expectations. Retail outlets will remain open, and like‑for‑like sales at managed stores rose 3.4%, buoyed by new shop openings.

The plan, expected to unfold over the next two and a half years, will cost Greggs roughly £60 million when disruption costs and redundancy payments are included. Union leader Sarah Woolley of the Bakers, Food and Allied Workers Union expressed deep concern for the 740 jobs at risk, questioning why staff livelihoods should be jeopardised despite the firm’s strong performance. Local officials, such as Kelso district councillor Euan Robson, described the potential closure of the Pettigrews factory as a shock to the community that has long relied on the plant for employment. Greggs’ chief executive Roisin Currie defended the move as necessary to keep the business evolving and to maintain efficiency, quality, value and service for customers.

Greggs expects its retail side to continue delivering growth, reporting a 7.7% sales increase in the three months to 26 September compared with the previous year, even as consumer finances face pressure. The company opened 95 new shops and closed 38 during the current year, bringing its total estate to 2,796 locations. A staff consultation is set to begin soon, though no final decisions have been made, leaving the affected workers and their communities awaiting further details on the restructuring’s impact.

⚡ Effects Interpreter