Four manufacturing sites will close with the expected loss of around 740 jobs
High street bakery chain Greggs said it plans to close four manufacturing sites with the expected loss of around 740 jobs in the next two-and-a-half years.
The job losses are not expected to be linked to shops and the firm’s website is still offering 44 pages of new roles across the company. A £60m cost linked to the job losses, such as redundancy payouts and distribution changes, is estimated to take around three years to pay off.
Just a few weeks ago, Greggs emerged as the brand with the most coffee outlets in the UK, usurping Costa Coffee for that particular crown, and the latest financial results released on Wednesday appear to indicate that will be the continued direction of travel: a focus on drinks and healthier food options rather than their traditional baked goods.
And that is feeding into the decision to close production sites, which will take place across two-and-a-half years. Parts of the manufacturing process will be relocated, Greggs said.
However, the closure of such sites look set to be entirely separate from plans to open more shops across the UK, with a longer-term target of 3,500 in total, up from the current 2,700.
Between 100-110 new stores and 12 express locations are still on track to be opened in the final months of this year.
“New shops are doing most of the work. Existing stores delivered less than half the growth, and once inflation is taken into account, customers aren't buying much more than they did a year ago,” said Alex Pugh, an analyst at Freetrade.
“Q4 will see a sprint on the building sites. To hit its target, the sausage roll superpower needs to open roughly three-quarters as many shops in the final quarter as it managed in the first nine months.
“The factory shake-up is the tougher news. Around 740 jobs could go, which is a big call for a business proud of making its own products.”
A tough environment for high street shops in general has seen them have to contend with a hotter than usual summer and household concerns over energy bills and discretionary spending once more.
That is reflected in Greggs’ product plans, with the factory shakeup and job losses a casualty of that.
“Greggs is quietly becoming a drinks brand. The home of the sausage roll leaned on matcha and cherry lemonade to get through a scorching summer, and its push into protein, salads, and functional drinks shows it's following customers towards healthier habits,” Mr Pugh added.
“Savour the 2026 upgrade, because Greggs is already flagging higher costs and inflation for 2027. The high street stalwart has survived a heatwave and a cost-of-living crisis, but a £1.50 sausage roll could be a real test of loyalty.”
