Greggs has announced plans to close four of its manufacturing factories as part of a significant restructuring of its food production operations, putting approximately 740 jobs at risk. The closures will be phased over the next two and a half years and will affect sites in Enfield (north London), North Lakes near Penrith (Cumbria), Pettigrews in Kelso (Scotland), and Seaham (County Durham). While manufacturing activities at these locations will cease, distribution operations will continue at some sites, including Enfield and Treforest in Wales.
Additional changes include a reduction in the product range manufactured at the Clydesmill site in Glasgow and at facilities in Manchester. Greggs also plans to stop producing tinned bread at its Gosforth site in Newcastle upon Tyne and intends to source certain products from specialist suppliers going forward.
The company anticipates that the restructuring will incur one-time costs of around £60 million, including redundancy payments. However, it expects to achieve annual savings of approximately £20 million by 2028 and 2029. Greggs has stated that it will soon begin consultations with affected employees and union representatives but emphasized that no final decisions have yet been made.
Greggs currently employs around 33,000 people across the United Kingdom, most of whom work in its retail stores. Roisin Currie, the company’s chief executive, highlighted the need for the changes to ensure the business remains competitive and sustainable amid evolving customer expectations. “To continue building a successful business for the future, we must keep evolving alongside changing customer expectations. We want to ensure Greggs remains a strong, sustainable business for decades to come,” she said.
The Bakers, Food and Allied Workers Union (BFAWU) criticized the announcement, with general secretary Sarah Woolley expressing deep concern over the potential job losses. Woolley questioned why workers’ livelihoods were at risk given the company’s strong performance, stating, “Our members will understandably be asking why their jobs and livelihoods should now be put at risk in the name of efficiency and future progression. They cannot simply be dropped like stones as the company moves on to its next phase of growth.”
Greggs, founded in 1939 in Tyneside by John Gregg, reported improved trading figures in its recent third-quarter update. Like-for-like sales at company-managed shops increased by 3.4 percent during the 13 weeks ending September 26, supported by new products and favorable weather in August and September. Overall sales rose 7.7 percent in the quarter and 7.4 percent in the year to date.
The company has expanded its footprint in 2023 by opening 95 new shops and closing 38, bringing its total number of outlets to 2,796. Greggs’ shares have risen about 24 percent over the past year, closing up 8.1 percent at £20.28 following the announcement.