In a trading update, the Newcastle-based bakery and fast-food chain revealed that it is set to shut down its factories in North Lakes near Penrith, Cumbria; Pettigrews in Kelso, Scotland; Seaham in County Durham; and Enfield in north London, although distribution operations will remain in place at the latter.
The business added that manufacturing would also be affected at its Treforest facility in Wales, although the site has also been earmarked to retain its distribution functions.
Greggs said the changes would take place gradually over the next two-and-a-half years and that, at this stage, its retail operations would not be impacted.
The company currently employs around 33,000 people across the UK, with the impending site closures set to result in up to 740 job losses.
Although the changes will only be implemented following a consultation process with affected colleagues and union representatives, Greggs’ production is now likely to be consolidated into six key sites: Clydesmill, Gosforth, Balliol, Leeds, Manchester and Derby.
The decision follows what Greggs described as a “comprehensive review” of its manufacturing network. The changes are expected to cost the firm around £60 million in disruption costs and redundancy payments, while delivering around £20 million of savings across 2028 and 2029.
Commenting on the proposal, chief executive Roisin Currie said: “Greggs is a strong and growing business, and we continue to invest significantly in our future. To continue building a successful business for the future, we must keep evolving alongside changing customer expectations. We want to ensure Greggs remains a strong, sustainable business for decades to come.
“Greggs’ manufacturing and logistics network remains a key strength of the business, and these proposals are intended to strengthen our manufacturing network, improve efficiency and ensure we remain well placed for the future while continuing to deliver the quality, value and service our customers expect.”
