Greggs has announced proposals to close four factories, with around 740 roles becoming redundant over the next two and a half years. The food-on-the-go firm, headquartered in Newcastle, outlined the plans in its third quarter trading update as part of a wider manufacturing overhaul.
Proposed site closures and changes
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, near Pontypridd, would end, though the site would continue as a manufacturing centre. There would also be a reduction of products made at Clydesmill and in Manchester, though both sites will remain open.
Greggs is also proposing to end the manufacture of tinned bread at its manufacturing site at Gosforth, Newcastle. The changes follow a comprehensive review to determine where future manufacturing activity should most effectively be located.
Consultation and financial impact
The company said it has launched a consultation exercise that will consider proposals that could lead to the closure of four sites. It said the changes, whilst difficult, are necessary to ensure Greggs continues to meet capacity requirements for growth in the most cost-efficient manner.
The proposals would result in cash costs of circa £60m, comprising capital expenditure of circa £40 million, together with disruption costs and redundancy payments. The annual cash saving in pre-tax operating costs is expected to be circa £20m, to be realised across the 2028 and 2029 financial years.
Sales growth and market outlook
The announcement came as Greggs unveiled sales growth of 7.7% in the three months to September 26, compared with the same period last year. The company said trading improved across the quarter, with new menu items appealing to customers, strong demand for its iced drinks range, and the relaunch of salads driving encouraging sales growth.
Greggs said cost inflation remains well managed and is expected to be circa 2% on a like-for-like basis in 2026, though there are signs of greater inflationary pressures in 2027. Shares in Greggs jumped by more than 6% in early trading to 1,999p following the announcement.
