Greggs to close four UK factories with 740 jobs at risk
Greggs has announced plans to shut four factories across the UK, putting around 740 jobs at risk over the next two and a half years. The bakery chain says the restructuring will cost about £60m but generate £20m in annual savings by 2028.
Greggs has announced plans to close four of its UK factories in a restructuring that could result in around 740 job losses over the next two and a half years. The bakery chain said it was consulting on the closures, which would initially cost about £60m when disruption costs and redundancy payments are included.
The company said the move was necessary to provide growth in the «most cost-efficient manner». It expects the changes to generate savings of about £20m each year by 2028, even as sales remain on an upward trajectory, with the chain reporting a 7.7% rise in sales.
The proposed closures would affect manufacturing sites in several parts of the UK. Greggs' manufacturing operation in Treforest, south Wales, is among those set to be affected by the overhaul. In Scotland, a factory is also slated for closure, and the company will reduce the range of products made at another Scottish site.
The consultation process means the final number of redundancies could change, but the company has put the potential figure at around 740 roles across the affected locations. The job losses would be spread over two and a half years, giving the business time to manage the transition and consult with staff and unions.
Greggs is one of the UK's most recognisable high street bakery chains, with a large manufacturing and distribution network supporting its retail estate. The decision to consolidate production reflects wider pressures on food manufacturers to control costs while maintaining output and product availability across a national store footprint.
The £60m initial cost includes disruption to operations as production is moved to other sites, as well as redundancy payments for affected workers. The company expects the restructuring to deliver £20m in annual savings by 2028, a figure that would improve its cost base over the medium term.
The plans come despite the chain's sales growth, suggesting the restructuring is driven by efficiency rather than falling demand. Greggs has not indicated any reduction in its retail presence or product range as a result of the factory closures, though the range of products made at one Scottish site will be reduced.
The affected sites span different regions, including Wales and Scotland, where local economies and workforces will feel the impact of the proposed closures. The consultation will determine how many of the 740 roles are ultimately lost and what support is offered to employees.
Greggs said the move was necessary to secure growth in the most cost-efficient manner, balancing its expansion ambitions with the need to streamline manufacturing. The company's sales performance remains positive, with the 7.7% increase underlining continued customer demand.
The restructuring is expected to unfold over the coming years, with the full savings target set for 2028. Until the consultation concludes, the exact shape of the closures and the final tally of job losses remain subject to change.
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