Greggs Unveils Restructuring Plan: Four Factories to Close, 740 Jobs at Risk

High street bakery chain Greggs has announced a significant restructuring proposal that would see four of its manufacturing sites close and approximately 740 roles eliminated across the business. The company, which is headquartered in Newcastle, confirmed that its retail shops would remain unaffected by the proposed changes.

The sites earmarked for closure include a manufacturing facility at North Lakes near Penrith in Cumbria, the Pettigrews site in Kelso, Scotland, a plant in Seaham, County Durham, and a facility in Enfield, Greater London. While the Enfield site would cease manufacturing operations, the company indicated that distribution activities would continue to run from that location.

In addition to the four closures, the proposals would also impact manufacturing operations at Greggs' Treforest site in Wales. However, that location would remain operational as a distribution centre for the business, preserving some roles and logistical functions in the region.

The restructuring is expected to unfold over a period of approximately two-and-a-half years, during which parts of Greggs' manufacturing processes would be relocated to other facilities within the company's network. The phased approach is likely intended to manage disruption and allow for a more orderly transition of production capacity.

Further changes were outlined regarding the company's broader manufacturing footprint. The range of products manufactured at Greggs' Clydesmill site in Glasgow and its Manchester location would be reduced, while production of tinned bread at its Gosforth facility would be discontinued entirely. Some products would instead be sourced from specialist external suppliers, a move that suggests a strategic shift toward greater supply chain flexibility.

Chief executive Roisin Currie addressed the proposals, stating that the company must "keep evolving alongside changing customer expectations." She emphasised that Greggs' manufacturing and logistics network remains a key strength of the business and described the proposals as a means to strengthen that network, improve efficiency and ensure the company remains well positioned for the future while continuing to deliver the quality, value and service customers expect.

The company currently employs around 33,000 people across the UK, with the vast majority working in its retail stores rather than in manufacturing or logistics roles. The proposed job losses therefore represent a relatively small proportion of the total workforce, though they are concentrated in specific communities where the affected factories are located.

A formal consultation with staff is expected to begin soon. Greggs was careful to note that "no final decisions" have been made, indicating that the proposals remain subject to review and negotiation with employee representatives and trade unions. This caveat is standard in large-scale restructurings and leaves open the possibility that some elements of the plan could be modified.

The financial implications of the shake-up are considerable. Greggs expects the restructuring to cost approximately £60m, a figure that includes disruption costs and redundancy payments. In return, the company anticipates saving around £20m across the 2028 and 2029 financial years, suggesting that the plan is designed to deliver medium-term cost efficiencies rather than immediate savings.

The announcement comes against a backdrop of what Greggs described as "challenging market conditions," with consumer finances continuing to come under pressure. Despite this, the company reported that its sales grew by 7.7% in the three months to September 26 compared with the same period a year earlier. Management characterised this performance as progress in a difficult trading environment.

Greggs also said that positive trading and continued cost control meant it expected a "modestly improved outcome" for 2026. This forward-looking statement may be intended to reassure investors and the wider market that the restructuring is part of a broader strategy to protect profitability rather than a response to immediate financial distress.

On the expansion front, the company has continued to grow its retail footprint. Greggs opened 95 new shops and closed 38 in the year to date, taking its total estate to 2,796 shops. This net increase of 57 outlets underscores the ongoing demand for the brand's products and its ambition to expand across the UK.

The contrast between the company's retail expansion and its manufacturing consolidation highlights a broader shift in Greggs' operating model. By concentrating production in fewer, more efficient sites and supplementing output with specialist suppliers, the company aims to reduce complexity and align its cost base with anticipated demand patterns.

For the communities affected by the proposed closures, the news will be significant. Sites such as those in Kelso, Seaham and Penrith are often among the larger employers in their local areas, and the loss of manufacturing jobs can have knock-on effects for local economies and supply chains. The consultation process is likely to be closely watched by local politicians, unions and residents.

Greggs has not yet provided a detailed breakdown of how the 740 job losses would be distributed across the affected sites, nor has it specified a precise timeline for when individual closures would take effect. Further details are expected to emerge as the consultation progresses and as the company finalises its plans over the coming months.