Greggs announces plans to shut four UK factories that could cost 740 jobs
Bakery chain, whose sales are up 7.7%, says move is necessary to provide growth in ‘most cost-efficient manner’ Business live – latest updates Greggs has announced plans to close four of its factories, in a move that could result in 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 £60m when including disruption…
UK bakery chain Greggs is set to shut down four of its factories, potentially resulting in 740 job losses over the next two and a half years. The company disclosed its plans to consult on the closures, which would initially incur £60 million in costs, including disruption and redundancy payments. However, the closures could generate £20 million in annual savings by 2028.
The announcement coincides with Greggs reporting a 7.7% sales growth in its most recent quarter, up from 7.2% in the first half of the year. The company stated that the closures are necessary to ensure growth in the "most cost-efficient manner." Greggs emphasized its commitment to minimizing the impact on its employees and said it will consult with trade unions and employee representatives to refine its proposals.
The closures may impact factories in Enfield, north London, Penrith in Cumbria, Kelso in Roxburghshire, Scotland, and Seaham in County Durham. The company will continue to operate distribution operations from Enfield. Treforest site in Wales, a manufacturing operation, will remain a distribution center for business. Greggs has experienced rapid growth this year, with 57 net new openings, aiming to open between 100 and 110 shops by the end of 2026.
Factors contributing to its success include the popularity of its low-cost offerings and the introduction of new products like iced matcha lattes and a variety of salads and chicken rolls.
Despite strong sales growth, Greggs warned investors that rising inflation could pose challenges in 2027. Analyst Alex Pugh from Freetrade noted that while the bakery chain has managed through a heatwave and a cost of living crisis, the price of a sausage roll may test customer loyalty. The company recently raised the price of its sausage roll by 5p to £1.35 in most outlets and increased latte prices by 10p to £2.25 to offset rising costs.
Shares in Greggs surged by 7.3% in early trading, becoming the top performer in the mid-cap FTSE 250 index and increasing its year-to-date gain to 17%. Headquartered in Newcastle, the company employs over 33,000 people across the UK.
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