Greggs proposes four factory closures, putting up to 740 jobs at risk
Greggs is consulting on plans to close four UK factories, a move that could eliminate 740 jobs over two and a half years. The bakery chain expects initial costs of £60 million but says the restructuring could save £20 million annually by 2028 as it manages rising operating pressures.
Greggs has announced plans to close four factories in the United Kingdom, putting as many as 740 jobs at risk over the next two and a half years. The bakery chain said it was beginning consultations on the proposed closures. The move would initially cost about £60 million, including disruption and redundancy payments, but the company expects annual savings of £20 million by 2028.
Greggs said the closures were difficult but necessary to support growth in the most cost-efficient manner. It said its immediate priority was to minimise the impact on employees and that it would work with trade unions and employee representatives during the consultation process. The proposed closures could affect factories in Enfield, north London; Penrith in Cumbria; Kelso in Roxburghshire, Scotland; and Seaham in County Durham.
Greggs plans to retain distribution operations at Enfield. Manufacturing operations at Treforest in Wales could also be affected, although the site would continue as a distribution centre. The announcement came as Greggs reported quarterly sales growth of 7.7 per cent, up from 7.2 per cent in the first half of the year.
The chain has expanded by 57 net new shop openings this year and aims to open between 100 and 110 shops by the end of 2026. Greggs attributed part of its recent performance to products including iced matcha lattes, salads and chicken rolls. However, it warned investors that inflationary pressures could increase in 2027.
The company has already raised prices to offset higher wage, energy and packaging costs. Its sausage roll increased by 5p to £1.35 in most shops, while a latte rose by 10p to £2.25. Greggs shares rose 7.3 per cent in early Wednesday trading, making the company the strongest performer in the FTSE 250 at that point.
The Newcastle-headquartered business employs more than 33,000 people across the UK.
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