Greggs to axe 740 jobs in manufacturing shake-up

(Sharecast News) - Greggs unveiled plans to overhaul its manufacturing operations on Wednesday, with the potential loss of more than 700 jobs. The bakery chain said that following a review of where future manufacturing activity should be located, four sites had been flagged for possible closure. It will now enter a consultation period, but confirmed 740 roles were likely to be made redundant over the next two-and-a-half years.

"This review has resulted in a set of proposals that would relocate elements of our manufacturing processes," Greggs said.

"We believe such changes, while difficult, are necessary to ensure Greggs continues to meet capacity requirements for growth in the years ahead in the most cost-efficient manner."

The changes are expected to result in cash costs of around £60m, consisting of £40m of capital expenditure and redundancy payments. The annual cost saving is expected to be around £20m, which was forecast to be realised across the 2028 and 2029 financial years.

The announcement coincided with an update on third-quarter trading. Total sales rose 7.7% in the 13 weeks to 26 September, or by 3.4% on a like-for-like basis, which Greggs attributed to ongoing menu innovation and more settled weather. Coupled with "strong" cost control, Greggs said it now expected a "modestly improved" outcome for 2026.

Cost inflation was forecast to be around 2% on a like-for-like basis, though the FTSE 250 firm acknowledged there were signs of greater inflationary pressures in 2027.

Greggs currently operates from 2,796 shops, and has 14 manufacturing and distribution sites.

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