Greggs (GRG.L) chief executive Roisin Currie says a sweeping overhaul of the bakery chain’s manufacturing operations will secure its long-term future.
The high street bakery giant has proposed shutting four factories and restructuring operations across several other sites over the next two-and-a-half years.
The restructuring will eliminate approximately 740 roles, with changes set to begin no earlier than the second quarter of next year.
Greggs said it will relocate parts of its manufacturing process as part of the consolidation, sourcing a small number of products from specialist external suppliers.
Operations at its Treforest site in Wales will also be affected, though the location will continue functioning as a distribution centre for the business.
The company also plans to reduce the product range manufactured at its Clydesmill Glasgow and Manchester sites, while stopping tinned bread production at Gosforth.
Greggs retail shops across the UK will not be affected by any element of the restructuring plan.
The shake-up is expected to cost around £60 million, covering disruption costs and redundancy payments, but is projected to save approximately £20 million across the 2028 and 2029 financial years.
Currie 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.”
She added: “We believe doing this makes us future-proofed for modern times,” emphasising the company’s commitment to remaining competitive in a changing market.
Greggs employs around 33,000 people across the UK, with the vast majority working in its stores rather than in manufacturing.
The firm confirmed it will begin a consultation process with affected workers and union representatives shortly, stressing that “no final decisions have been made” at this stage.
Currie stated: “We want to ensure Greggs remains a strong, sustainable business for decades to come,” pointing to the need to evolve alongside shifting customer expectations.
The announcement came alongside a trading update showing sales grew by 7.7% in the three months to September 26, compared with the same period a year earlier.
Like-for-like sales grew by 3.4% across managed stores, with overall growth supported by the continued opening of new locations nationwide.
Greggs has opened 95 new shops and closed 38 in the year to date, bringing its total estate to 2,796 shops across the UK.
The company said positive trading and cost discipline mean it expects a “modestly improved outcome” for 2026, despite what it described as “challenging market conditions.”
Bosses warned, however, that there are “signs of greater inflationary pressures in 2027” as higher energy costs begin to feed through into the business.
Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union, said: “The workers affected by these proposals have played a huge part in getting Greggs to where it is today.”
Woolley added: “They cannot simply be dropped like stones as the company moves on to its next phase of growth,” reflecting deep union concern over the human cost of the restructuring.
