Greggs Cuts 740 Jobs, Shuts Four Factories to Save £20m Annually

Greggs announced plans on September 30 to close four manufacturing sites and cut approximately 740 jobs over the next two and a half years. The restructuring will cost £60 million upfront but generate £20 million in annual savings by 2028-2029. The move comes as the bakery chain reported stronger third-quarter sales growth of 7.7%, with like-for-like sales at managed stores rising 3.4%. Retail shops will not be affected.

Why Greggs is closing factories despite strong sales

Greggs reported robust trading in the 13 weeks to 26 September, with total sales up 7.7% year-on-year. Yet CEO Roisin Currie said the company must consolidate manufacturing to remain efficient and future-proof operations. The closures will affect sites in Penrith, Cumbria, Kelso in Scotland, Seaham in County Durham, and Enfield in Greater London. Distribution operations will continue at Enfield and Treforest in Wales.

What the restructuring will cost and save

The factory closures will require £60 million in cash costs, including roughly £40 million of capital expenditure and redundancy payments. Greggs expects the programme to generate annual pre-tax operating cash savings of about £20 million, with benefits emerging across 2028 and 2029. New distribution centres in Derby and Kettering will support future growth, though additional overheads will increase costs in 2027.

Union concerns and consultation process

The Bakers, Food and Allied Workers Union expressed deep concern about the announcement. General secretary Sarah Woolley said workers had played a huge part in Greggs’ success and questioned why their jobs should be at risk in the name of efficiency. Greggs said it will enter a consultation period shortly with trade unions and employee representatives to refine the proposals, stressing that no final decisions have been made.

Greggs lifts outlook amid expansion plans

Greggs lifted its 2026 profit outlook to modestly improved results following stronger trading. The company has opened 57 net new shops this year and still expects between 100 and 110 net new openings by year-end. New products including iced matcha lattes and an expanded salad range boosted summer sales. However, Greggs warned of greater inflationary pressures expected in 2027, with like-for-like cost inflation for 2026 still around 2%.

Final Thoughts

Greggs’ restructuring reflects a push for efficiency despite record sales growth. With the bakery chain expanding store numbers while cutting manufacturing headcount, investors should monitor whether the £20 million annual savings offset rising inflation pressures in 2027.

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