Greggs will shut four factories and cut 740 jobs, spending £60M to save £20M
The baker's two-and-a-half-year manufacturing overhaul consolidates production into fewer sites and specialist suppliers, leaving its 2,796 shops untouched.
What was changed
Greggs, the Newcastle-based bakery chain, announced plans to shut four of its factories — North Lakes near Penrith, Pettigrews in Kelso, Seaham in County Durham and Enfield in Greater London — and cut 740 jobs. Manufacturing operations at its Treforest site in Wales will also be affected, though the site continues as a distribution centre, as will Enfield's distribution operations.
The changes roll out over two and a half years: the range manufactured at Clydesmill in Glasgow and Manchester will be reduced, production of tinned bread at Gosforth will stop, and some products will be sourced from specialist suppliers instead. The company stressed its retail shops — 2,796 at the last count — would not be affected, and said a staff consultation was starting with 'no final decisions' yet made.
The shake-up is expected to cost about £60 million in disruption costs and redundancy payments, in exchange for about £20 million of savings across the 2028 and 2029 financial years. The announcement landed alongside trading showing sales up 7.7% in the three months to 26 September and a 'modestly improved outcome' expected for 2026.
Why it worked
Chief executive Roisin Currie framed the move as keeping the business evolving alongside changing customer expectations rather than as a retrenchment.
The manufacturing and logistics network was called a key strength worth strengthening — consolidation concentrates volume into fewer, more efficient sites.
Sourcing some products from specialist suppliers outsources categories where Greggs' own factories had lost their scale advantage.
The £20 million annual saving against £60 million of one-off cost only pays back from 2028, signalling the plan is about the next decade's cost base, not this year's margin.
What can be applied
Consolidate the factory floor while the shops are still growing: spending £60M to save £20M a year reads as housekeeping, not retreat, when same-quarter sales are up 7.7%.
Aftermath
Consultation with the affected workforce was beginning, with no final decisions taken. The company had opened 95 new shops and closed 38 year-to-date, taking the estate to 2,796, and expected a modestly improved 2026 outcome on positive trading and continued cost control.