Greggs to Close Four Manufacturing Sites and Cut 740 Jobs in Major Restructuring

High street bakery chain Greggs has unveiled proposals to close four of its manufacturing facilities across the UK, a move that would result in the loss of 740 jobs. The Newcastle-headquartered company confirmed the plans on Wednesday, describing them as part of an effort to strengthen its manufacturing and logistics network.

The sites earmarked for closure include the North Lakes facility near Penrith in Cumbria, the Pettigrews plant in Kelso, Scotland, the Seaham site in County Durham, and the Enfield operation in Greater London. While manufacturing would cease at all four locations, distribution activities would continue to operate from Enfield, according to the company.

The proposals would also affect manufacturing operations at Greggs' Treforest site in Wales. However, that facility would remain operational as a distribution centre for the business, the firm said.

Greggs emphasised that its retail shops would not be impacted by the proposed changes. The company operates thousands of outlets across the UK and employs approximately 33,000 people nationally, with the vast majority of those staff working in its stores rather than in manufacturing or logistics roles.

Under the plans, parts of Greggs' manufacturing processes would be relocated over a period of roughly two-and-a-half years. The range of products produced at the company's Clydesmill site in Glasgow and its Manchester location would be reduced. Additionally, production of tinned bread at Gosforth would be discontinued entirely.

The company also indicated that certain products would be sourced from specialist suppliers rather than manufactured in-house, marking a shift in its approach to production. These changes reflect what Greggs described as a need to adapt to evolving customer expectations and market conditions.

Chief executive Roisin Currie said the business needed to "keep evolving alongside changing customer expectations." She noted that Greggs' manufacturing and logistics network remains a key strength, and explained that the proposals are intended to strengthen that network, improve efficiency, and position the company well for the future. She added that the changes would help Greggs continue delivering the quality, value, and service customers expect.

A consultation with affected staff is expected to begin soon. The company stressed that no final decisions have been made regarding the proposals, suggesting that the details could still change following discussions with employees and their representatives.

The restructuring is projected to cost Greggs approximately £60m, a figure that includes both disruption costs and redundancy payments for affected workers. Despite the upfront expense, the company expects the changes to generate savings of about £20m across the 2028 and 2029 financial years, which would help offset the initial outlay.

The announcement came alongside a trading update showing that Greggs' sales grew by 7.7% in the three months to September 26 compared with the same period a year earlier. The company characterised this performance as progress in the face of what it called challenging market conditions, noting that consumer finances have continued to come under pressure from broader economic factors.

Greggs also reported that positive trading and ongoing cost control measures meant it expected a "modestly improved outcome" for 2026. The company's ability to grow sales while simultaneously restructuring its manufacturing operations suggests it is attempting to balance expansion with efficiency gains.

In terms of its retail footprint, Greggs opened 95 new shops and closed 38 in the year to date, bringing its total estate to 2,796 locations. This continued expansion of the store network stands in contrast to the contraction of its manufacturing operations, highlighting a strategic shift toward retail growth while streamlining production capacity.

The proposed factory closures would affect communities in several regions, including Cumbria, the Scottish Borders, County Durham, Greater London, and South Wales. Local economies in these areas could face significant impacts from the job losses, particularly in smaller towns like Kelso and Seaham where alternative employment opportunities may be more limited.

For Greggs, the restructuring represents a significant moment in its long history as one of the UK's most recognisable food retailers. The company has built its reputation on affordable baked goods and convenience, and the decision to consolidate manufacturing while maintaining its store expansion reflects the pressures facing food retailers in a challenging economic environment.

The outcome of the staff consultation will be closely watched by employees, unions, and industry observers alike. With no final decisions yet made, the coming weeks and months will determine the precise shape of Greggs' manufacturing footprint and the future for hundreds of workers whose jobs hang in the balance.