Greggs plans to close four factories: Risk of layoffs for approximately 740 employees
Greggs, one of the UK's major bakery chains, has put forward plans to close four of its facilities as part of a strategy to centralize production.
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Greggs, a leading UK bakery and food-on-the-go chain, is preparing for a comprehensive restructuring of its production network. The company has announced that it plans to close four of its factories, a move that could put approximately 740 jobs at risk.
The plan is expected to be implemented over the next two and a half years. The facilities slated for potential closure are located in Enfield, North Lakes near Penrith, Kelso in Scotland, and Seaham.
The decision is notable as it comes during a period of rising sales for the company. Greggs' total sales for the three-month period ending September 26 increased by 7.7 percent compared to the same period last year. The company also revised its profit outlook for 2026 upwards.
PRODUCTION TO BE CONSOLIDATED IN FEWER FACILITIES
Greggs states that the factory closure plan is not driven by a decline in demand, but is instead aimed at consolidating production into fewer facilities, increasing operational efficiency, and reducing costs.
The restructuring is expected to cost the company approximately 60 million pounds. In return, Greggs aims to achieve annual savings of approximately 20 million pounds by the end of 2029.
While hundreds of jobs are at risk on the production side, the company's store growth target remains in place. The number of Greggs stores in the UK has reached 2,796. The company plans to open 100 to 110 new stores throughout 2026 and aims to reach 3,500 stores in the long term.
In addition to the four factories planned for closure, there are also discussions about reducing production at some facilities or relocating operations to other centers. Greggs' retail stores are not expected to be directly affected by this restructuring.