Greggs announces plans to shut four UK factories that could cost 740 jobs
Greggs is closing four manufacturing plants across the UK and placing 740 jobs at risk as part of a restructuring plan, drawing criticism from unions.
- Core Development: Greggs is closing four manufacturing plants across the UK and placing 740 jobs at risk as part of a restructuring plan, drawing criticism from unions.
- Beat Context: Categorized under Business with independent corroboration.
- Reporting Depth: 4 minute analytical read synthesized from verified newsroom sources.
Greggs has announced radical plans to shut four of its manufacturing facilities across the United Kingdom, a move that places approximately 740 jobs at risk over the next two and a half years as part of a sweeping supply chain overhaul. The announcement from the Newcastle-headquartered fast-food bakery chain coincides with robust financial results, creating immediate friction with labour unions who question why thriving financial performance has resulted in job cuts.
According to The Independent, the proposed manufacturing consolidation will affect sites at Enfield in Greater London, North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, and Seaham in County Durham. While the Enfield site is slated to lose its manufacturing capabilities, distribution operations will continue to run from the location. Furthermore, manufacturing operations at the Treforest site in Wales will be impacted, though that facility will similarly transition into a pure distribution centre.
Media additions
Additional adjustments include scaling back the product range manufactured at Clydesmill in Glasgow and Manchester, while the production of tinned bread at Gosforth will be permanently halted. Certain specialty products will instead be procured from external specialist suppliers. Following these reductions, the company's remaining manufacturing network will operate across six core sites: Clydesmill, Gosforth, Balliol, Leeds, Manchester, and Derby.
Chief executive Roisin Currie defended the sweeping changes, stating that the company must adapt to shifting consumer demands and secure long-term sustainability. To continue building a successful business for the future, we must keep evolving alongside changing customer expectations,
Currie said via Yahoo News UK. She added that the network remains a core strength, and the restructuring is intended to boost efficiency as the firm eyes an expanded estate of at least 3,500 retail shops.
The restructuring carries a hefty initial price tag. According to QSR Media UK, the total cash cost will reach approximately £60m, comprising roughly £40m in capital expenditure alongside disruption and redundancy expenses. Once fully implemented, the bakery chain anticipates securing annual pre-tax savings of around £20m, which are expected to materialize across the 2028 and 2029 financial years as reported by Yahoo Finance UK.
| Financial Metric / Period | Reported Figure / Detail |
|---|---|
| Q3 Total Sales Growth (13 weeks to 26 Sept 2026) | Up 7.7% |
| Managed Store Like-for-Like Sales Growth | Up 3.4% |
| Estimated Restructuring Cost | £60m (£40m capital expenditure + redundancy/disruption) |
| Projected Annual Savings (2028–2029) | £20m per year |
| Total UK Workforce | Over 33,000 employees |
| Current Total Shop Estate | 2,796 shops |
The announcement arrived in tandem with strong financial updates. Business Matters reported that total sales climbed 7.7 percent during the 13 weeks leading up to Friday, 26 September 2026, compared to the same timeframe in the previous year. Over the broader 39-week period, total sales advanced by 7.4 percent. Company-managed shop like-for-like sales grew by 3.4 percent over the quarter.
Despite this positive trading momentum, the announcement drew swift condemnation from labour representatives. Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union (BFAWU), expressed deep concern over the threat to livelihoods.
Woolley emphasized that employees had powered the bakery's rise to become Britain's biggest fast-food business, arguing that workers should not be treated as disposable assets during corporate expansion phases."The BFAWU is deeply concerned by today’s announcement from Greggs, which places hundreds of workers and their livelihoods at risk as part of proposed changes to the company’s manufacturing network. Our immediate priority is our members, their jobs, their families and the communities that could be affected by these proposals."
Sarah Woolley, General Secretary, BFAWU via The Independent
Local political figures also voiced dismay at the proposals. As reported by Yahoo News UK, Kelso and district councillor Euan Robson described the potential closure of the Pettigrews facility in the Scottish Borders as a severe shock to the community. Robson noted that while the factory employs fewer than 100 staff, its loss would deal a heavy blow to the local rural economy. Scottish Borders Council confirmed that employability services have been activated to support potentially affected workers.
Looking ahead, Greggs intends to launch a formal consultation process with trade unions and employee representatives to refine its proposals, stressing that no final decisions have been made. While management anticipates a modestly improved financial outcome for the 2026 financial year due to tight cost control and a stable inflation rate running at roughly 2 percent, analysts and executives warned of mounting inflationary pressures heading into 2027, driven by rising energy costs and upcoming investments in new distribution hubs in Derby and Kettering.
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Greggs is closing four manufacturing plants across the UK and placing 740 jobs at risk as part of a restructuring plan, drawing criticism from unions.
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When was this report published?
This briefing was published on September 30, 2026 and is permanently cataloged in the Newsarchy UK Business archives.
