Greggs plans four factory closures with 740 jobs at risk
North East bakery giant Greggs has announced plans to close four manufacturing sites, putting around 740 jobs at risk.
The Newcastle-headquartered food-on-the-go business says it will introduce the proposed changes over the next two-and-a-half years as it reshapes its manufacturing network to support plans for major national growth.
The proposals were announced alongside GreggGreggs’st trading update, which revealed sales increased by 7.7% in the three months to September 26 compared with the same period last year.
Greggs said owning and operating its own manufacturing and logistics network remains a key strength. It is investing in additional capacity to support at least 3,500 shops, which it says will allow the business to grow further, create more jobs and deliver returns for shareholders.
However, following a comprehensive review of where its future manufacturing operations should be located, the company has proposed moving parts of its production network.
The proposals include closing Greggs’ manufacturing site in Seaham, County Durham, alongside sites at Enfield, North Lakes and Pettigrews.
Manufacturing operations at Treforest, near Pontypridd, would also end, although the site would remain open as a manufacturing centre.
There would also reduce the range of products manufactured at Clydesmill and Manchester, although both sites would continue operating.
In Newcastle, Greggs is proposing to end tinned bread production at its Gosforth manufacturing site.
The announcement initially sent Greggs shares up more than 6% in early trading, to 1,999p.
In a stock market statement, Greggs said: “Today we have launched a consultation exercise that will consider proposals that could lead to the closure of four sites. This may result in a total of circa 740 roles becoming redundant over a period of two and a half years.
“We believe such changes, whilst difficult, are necessary to ensure Greggs continues to meet capacity requirements for growth in the years ahead in the most cost-efficient manner.
“Our immediate priority is to minimise the impact on our people where possible. We will enter into a consultation period shortly to work with trade unions and employee representatives of those affected to refine and develop these proposals.”
The proposals remain subject to consultation.
Greggs expects the changes to result in cash costs of around £60m, including about £40m in capital expenditure, plus disruption costs and redundancy payments.
Once the programme is complete, the company expects to make annual cash savings of around £20m in pre-tax operating costs, with those savings expected to be realised across the 2028 and 2029 financial years.
The factory plans come as Greggs reported continued sales growth during the latest quarter.
The company said trading improved as the quarter progressed, with new menu launches proving popular with customers.
There was strong demand for its iced drinks range, while the relaunch of salads also delivered what Greggs described as “encouraging” sales growth.
Looking ahead to the autumn and the remainder of the year, the company said it remains focused on introducing “exciting new flavours” across its established Greggs favourites.
Greggs said it had continued to make progress despite challenging market conditions by developing its product range and making its brand more convenient through the expansion of its shop estate.
It said cost inflation remained well managed and was expected to be around 2% on a like-for-like basis in 2026, although it warned of signs of greater inflationary pressure in 2027.
The company said the proposed changes to its manufacturing footprint reflected the business’s evolution and its focus on remaining a leading value choice for customers.