Greggs has announced plans to shut four factories, with around 740 jobs expected to go as part of an overhaul of its food manufacturing operations. The Treforest site in Rhondda Cynon Taf is affected by the proposals, with manufacturing operations at the site set to be impacted, though it is understood it will remain open as a distribution centre for the business.
Manufacturing sites to close
The high street bakery chain said the proposed changes, which will take place over the next two and a half years, will see it relocate parts of its manufacturing process. It plans to close its manufacturing sites at Enfield in Greater London, North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, and Seaham in County Durham. It will continue to run distribution operations from Enfield.
Greggs also said it will reduce the range of products manufactured at its Clydesmill Glasgow and Manchester locations, as well as stopping the manufacturing of tinned bread at Gosforth. The firm said this will consolidate its manufacturing operations, with the company set to source a small number of products from specialist suppliers.
Consultation process to begin
Greggs is yet to confirm whether any jobs at the Treforest factory are at risk. The firm said it will shortly start a consultation process with affected workers and their union representatives but stressed that “no final decisions have been made”. Greggs retail shops will not be affected by the changes.
Greggs employs around 33,000 people across the UK, with the vast majority of these in stores. Chief executive Roisin Currie said: “To continue building a successful business for the future we must keep evolving alongside changing customer expectations.”
Costs and savings
“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.”
The shake-up will cost the firm around £60m including disruption costs and redundancy payments. But it said the plans will save it around £20m across the 2028 and 2029 financial years.
