The UK bakery chain Greggs has announced plans to close four manufacturing plants.
If implemented, the plan could affect up to 740 jobs over the next two and a half years.
However, the company said consultations are pending and that no final decision has been made.
3-line summary
1. Greggs has proposed closing 4 factories
2. Up to 740 jobs could be affected
3. The closures have not been finalized because consultations have not yet taken place
Penrith, Kelso, Seaham, and Enfield are affected
Greggs has proposed closing manufacturing facilities in North Lakes near Penrith in Cumbria, England; Pettigrews in Kelso, Scotland; Seaham in County Durham, England; and Enfield in north London. According to reports from the BBC and The Guardian, logistics operations will continue in Enfield, though manufacturing will not.
Manufacturing operations at the Treforest facility in Wales could also be affected, although the site will likewise be retained as a logistics hub. In Clydemill near Glasgow and in Manchester, the range of products manufactured will be reduced, while canned-bread production will be discontinued in Gosforth. The company is also considering sourcing some products from specialist suppliers.
The cost-cutting plan and worker consultations are separate matters
Greggs estimates that the restructuring will cost approximately £60 million, including disruption costs and payments related to employee departures. The company expects to save approximately £20 million annually from 2028. This is the company’s plan and projection, not a confirmed savings result.
The company described the purpose of the changes as improving the efficiency of its manufacturing network and strengthening the foundation for future growth. In contrast, Sarah Woolley, general secretary of the food and bakery workers’ union BFAWU, expressed concern about the impact on workers, their families, and local communities. Iwan Robson, a councillor in the Kelso area, also said that closing a factory with a long-standing presence in the community could shock the local economy.
The most important point is that the possibility of 740 job cuts does not mean confirmed dismissals. Greggs said it would soon begin consultations with affected employees and trade-union representatives, and reiterated that no final decision had been made. The scale of the proposed factory closures is substantial, but the actual sites and procedures will be determined through this consultation process.
Store expansion and manufacturing cuts were announced at the same time
This announcement cannot be viewed simply as a response to poor store trading at Greggs. The BBC reported that like-for-like sales at company-managed stores increased 3.4%, while sales for the three months to 26 September rose 7.7% from the same period a year earlier. The company said it had opened 95 stores and closed 38 so far this year, bringing the total number of stores to 2,796 (2796).
The Guardian reported that Greggs is maintaining its plan to open 100–110 new stores by the end of 2026. Since store expansion and manufacturing-facility reductions were included in the same announcement, it is more accurate to understand the matter as a plan to change the production and logistics system than as a retail-store withdrawal. However, the results these changes will leave for workers and local communities have not yet been determined.
References
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