Bakery giant Greggs has announced plans to close four factories as part of a major overhaul of its manufacturing operations, with around 740 jobs set to be affected.
The high street chain said the proposed changes would be rolled out over the next two-and-a-half years as it restructures the way food products are made and distributed across the business.
Greggs said the plans involve relocating parts of its manufacturing process and would cost the company around £60 million, including redundancy payments and disruption costs.
However, the firm expects the changes to generate savings of approximately £20 million during the 2028 and 2029 financial years.
The announcement comes despite continued sales growth for the bakery chain.
Greggs reported that sales increased by 7.7 per cent in the three months to September 26 compared with the same period last year.
The company said trading strengthened throughout the quarter, helped by new product launches and more favourable weather conditions during August and September.
Greggs has not yet confirmed how the job losses will be distributed across its manufacturing sites.
The bakery chain, known for products including sausage rolls, bakes, sandwiches and sweet treats, has continued to expand its store network across the UK in recent years despite growing economic pressures on retailers.
The proposals will also impact manufacturing operations at its Treforest site in Wales, but this will continue as a distribution centre.
The company 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.
Greggs has a manufacturing site in Manchester, meaning the announcement is likely to be closely watched across the North West.
The company has not yet confirmed which four factories are proposed for closure as it begins consultations on the shake-up of its manufacturing network.
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