Greggs plans factory closures, 740 jobs at risk

Greggs has announced proposals for a significant restructuring of its manufacturing network that could see four UK factories close over the next two-and-a-half years. The plans place about 740 manufacturing roles at risk as the bakery group seeks to reshape its production footprint while keeping its retail shop estate unchanged.

The sites proposed for closure are North Lakes near Penrith in Cumbria, Pettigrews in Kelso in Scotland, Seaham in County Durham and Enfield in Greater London. While manufacturing at Enfield would cease under the proposals, the site is expected to continue operating as a distribution hub.

Manufacturing operations at Treforest in Wales would also be affected by the restructuring. However, Treforest is planned to remain in use as a distribution centre, reflecting a shift in how Greggs organises the supply of products to its store network.

Greggs estimates that the restructuring programme will cost about £60 million, including disruption and redundancy payments linked to the proposed factory closures. These are upfront costs that the company expects to incur as it reconfigures its production and logistics operations.

The group projects that the changes will generate approximately £20 million of annual pre-tax operating cash savings, to be realised across the 2028 and 2029 financial years. These savings are expected to come from a more streamlined manufacturing base once the new structure is in place.

Alongside the restructuring announcement, Greggs reported stronger trading in its most recent quarter. On this basis, the company said it now expects a modestly improved outcome for 2026, indicating that current performance remains resilient even as it plans for longer-term efficiency gains.

Greggs has stressed that its retail shops will not be affected by the proposed changes, with the reshaping focused on the manufacturing and distribution side of the business. The company’s store estate is therefore expected to continue trading as normal while the consultation and restructuring process unfolds.

A formal consultation with staff, trade unions and employee representatives at the affected sites is due to begin shortly. Greggs has said that no final decisions have yet been taken on the closures, indicating that the outcome will be determined after the consultation process.

The company has highlighted its intention to work with representatives to refine and develop the restructuring proposals. The process is expected to span the next two-and-a-half years, during which time the phased closure of manufacturing sites and reconfiguration of distribution operations would take place if the plan proceeds.