Greggs has announced plans to close four UK sites, putting 740 jobs at risk, including one at Seaham, County Durham. The Newcastle-based company said the changes to its manufacturing teams are needed to keep the company competitive and prices low.
The job losses were announced alongside a trading update in which Greggs highlighted good financial performance in recent months. The company’s third quarter results show a 7.7% increase in revenues, with 57 new sites added to its estate. It said that good weather in August and September had helped more people come to its sites.
Efficiency drive to support expansion
With its number of shops around the UK now standing at 2,796, and plans to reach at least 3,500 with continued expansion, CEO Roisin Currie said that it had to find efficiencies to ensure that it was able to keep prices as low as possible for customers.
Ms Currie said: “We continue to invest in our logistics network, as we have done since 2024. That helps us be able to deliver the capacity to serve up to 3,500 shops. And we continue to invest in our new shop pipeline that will mean net new shops of around 100 a year.
“We are a growing business, there are opportunities for scale because the growth of the business means there is more volume coming through the manufacturing operation. So we have to look to evolve and stay competitive, and how we take those efficiencies to make sure we’re protecting the future growth of the business.
“That’s extremely important as a value operator in the food-on-the-go market. We need to make sure we are always looking to where there are efficiencies so we can continue to deliver that value for the customer.”
Consultation and support for affected staff
Greggs has opened a 45-day consultation with staff affected and would offer the opportunity to transfer to other sites where possible. The company is also looking at providing support such as CV writing and reaching out to other local companies to help staff find new jobs.
As well as the site in Seaham, Greggs is looking to close sites in Essex, Cumbria and Scotland. It is also consulting on changes to operations at its sites in Newcastle, Wales, Scotland and Manchester, though all of those locations will remain open.
Political and council reaction
Reacting to the possible closure of the Seaham site, Easington MP Grahame Morris said: “I recognise Greggs’ statement that no final decisions have been made, but consultation must be genuine. Every alternative to compulsory redundancies must be explored, including retaining work at existing sites, redeployment, retraining and questioning any move to shift production elsewhere.
“For Seaham, this is not just about numbers on a spreadsheet. These are people with mortgages to pay, families to support and a vital role in our local economy. The community deserves clarity, fairness and respect.
“I will be working closely with the Bakers’ Union and with Greggs to ensure that the voices of workers in Seaham are heard loud and clear. Growth should mean greater security for the workforce that delivered it, not fear about whether they still have a future in the business.”
Durham County Council has also reacted to the news. Cllr Darren Grimes, the council’s Deputy Leader, said: “We are incredibly disappointed to hear that Greggs is to begin consultation on the future of its factory in Seaham.
“Greggs is an important employer in the area, and our thoughts are very much with the people who work there, and their families, at this difficult time.
“We are currently seeking to confirm the number of County Durham residents whose jobs are at risks and the timeline for decisions on the future of the factory.
“Any closure of this scale will also impact on the wider East Durham community, which is still reeling following the announcement NSK plans to close its two Peterlee factories. The news also comes just weeks after Clayton Glass in Annfield Plain called in administrators and less than two months after Erwin Hymer Group confirmed production would cease at its Consett site.
“We are committed to doing everything in our power to support those affected throughout the process. We will also continuing to lobby the Government and the North East Mayoral Strategic Authority to invest in protecting existing jobs and industries in our area, and where job losses are unavoidable, to invest in the localised employment and skills support needed to ensure our residents find new roles following significant site closures such as this.”
