Bakery giant Greggs has announced plans to cut more than 700 jobs through the closure of four of its manufacturing sites, including one in the North East. The potential loss of 740 roles was revealed in a trading update to the London Stock Exchange from the Newcastle-based company.
Manufacturing review targets savings
The update outlines growing sales and continuing shop openings, as well as the success of some new menu items. Greggs said it had reviewed its operations as it built towards its goal of having at least 3,500 shops around the country. The job losses, which would take place over the next two-and-a-half years, would save around £60m, the company said.
The company is proposing to close its manufacturing site at Seaham, County Durham, as well as locations at Enfield, North Lakes and Pettigrews. Manufacturing operations at Treforest would end, but it would continue as a manufacturing centre. There would be a reduction of products made at Clydesmill and Manchester, though both sites stay open, and Greggs would end the manufacture of tinned bread at its manufacturing site at Gosforth.
Consultation with trade unions
Greggs said: “Our investment in additional capacity to serve at least 3,500 shops will enable further growth in the business, creating many more jobs and driving strong returns for shareholders. Alongside this investment programme, we have carried out a comprehensive review to determine where our future manufacturing activity should most effectively be located to ensure we can continue to offer the exceptional value that Greggs is famous for. This review has resulted in a set of proposals that would relocate elements of our manufacturing processes.
“Today we have launched a consultation exercise that will consider proposals that could lead to the closure of four sites. This may result in a total of circa 740 roles becoming redundant over a period of two and a half years.
“We believe such changes, whilst difficult, are necessary to ensure Greggs continues to meet capacity requirements for growth in the years ahead in the most cost-efficient manner. Our immediate priority is to minimise the impact on our people where possible. We will enter into a consultation period shortly to work with trade unions and employee representatives of those affected to refine and develop these proposals.”
Sales growth and new openings
Elsewhere in the trading update, Greggs said it had delivered sales growth of 7.7% in the third quarter of 2026, and added 57 new sites to its estate. It said that good weather in August and September had helped sales. Greggs reported strong demand over the summer for its new iced drinks range, and for its relaunched salad range.
It said it would be bringing customers “exciting new flavours across the Greggs favourites they know and love” in the coming months, pointing to the recent successful launch of its steak and stilton bake. Greggs now has 2,796 shops across the UK, including the recent opening of its 50th drive-thru restaurant in Sunderland. It expects to have around 100 new shops over the year.
In a note on its future prospects the company said it was making progress “despite challenging markets”, including greater inflationary pressures. It said it was expecting a “modestly improved outcome for 2026”.
