Greggs shareholders are set to receive a £19 million dividend payout just days after the bakery chain announced plans to cut hundreds of jobs, prompting criticism from unions and politicians.
The high street bakery this week proposed cutting more than 700 roles in a bid to “future-proof” the business. The company is due to pay out 19p a share on October 9, which works out at about £19.4m.
Union and MP criticism
Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union (BFAWU), told the Mirror: “You cannot hand millions to shareholders while workers face losing their livelihoods and expect them not to ask serious questions.”
Labour MP Markus Campbell-Savours, whose Penrith and Solway seat has a Greggs manufacturing site set for closure, described the dividend as a “punch in the guts” for workers.
Profit and proposed closures
Greggs — popular for its pastries including sausage rolls — raked in £76m pre-tax profit in just six months. It has proposed to shut four factories and change operations at a number of other sites over the next two-and-a-half years.
Greggs plans to close its manufacturing sites at Enfield, Greater London; North Lakes near Penrith, Cumbria; Pettigrews in Kelso, Scotland; and Seaham, County Durham. It will continue to run distribution operations from Enfield. The proposals will also impact manufacturing operations at its Treforest site in Wales, but this will continue as a distribution centre for the business. Greggs retail shops will not be affected by the changes.
Union warning and company response
Earlier this week, Ms Woolley said: “Greggs is clear in its own announcement that the business continues to perform strongly, that more customers are choosing Greggs than ever before, and that it is investing significantly to support further growth. Against that backdrop, our members will understandably be asking why their jobs and livelihoods should now be put at risk in the name of efficiency and future progression.”
She added: “The workers affected by these proposals have played a huge part in getting Greggs to where it is today. They cannot simply be dropped like stones as the company moves on to its next phase of growth.”
Greggs' chief executive Roisin Currie has said the group needs to improve efficiency in its operations to help deliver customers value. She said: “We will continue to be best-in-class for the products we supply and manufacture, and if we want to be efficient we will always need to look at what we do periodically.” The boss added: “We believe doing this makes us future-proofed for modern times.”
Greggs, headquartered in Newcastle, was established as a door-to-door bakery round in 1939 before opening its first shop in 1951. The company recorded a £76m pre-tax profit in the 26 weeks ended June 27 this year.
In its interim results for the half year ended June 27, Greggs said: “The Board has declared an interim dividend of 19.0 pence per share (2025: 19.0 pence) in line with its expectation that the ordinary dividend will be maintained until it is two times covered by underlying earnings. The interim dividend will be paid on 9 October 2026 to those shareholders on the register at the close of business on 11 September 2026.”
Greggs told the Mirror: “Greggs is a strong and growing business, and we continue to invest significantly in our future. We have entered into a period of consultation with our colleagues regarding proposed changes to our manufacturing over a two and half year period. Importantly, no final decisions have been made. These proposed changes are designed to ensure Greggs continues to meet capacity requirements for growth and can keep investing in jobs, communities and opportunities across the UK in the years ahead.”
