Greggs to Close Four UK Factories, 740 Jobs at Risk

Greggs plans to close four UK factories in a restructuring that could eliminate 740 jobs over the next two and a half years.

The bakery chain said it has entered consultation on the closures. The move will carry an initial cost of £60m, a figure that includes disruption costs and redundancy payments, according to the company.

Greggs expects the restructuring to pay for itself quickly. The company said the factory closures could generate £20m in savings each year by 2028.

The announcement comes while the business is performing well. Greggs reported sales up 7.7%, underscoring that the cuts are a cost-efficiency drive rather than a response to falling demand.

The company justified the decision in terms of growth economics. It said the move is necessary to provide growth in what it called the "most cost-efficient manner".

The job losses would be phased over two and a half years, giving the company and affected workers an extended consultation and transition window. The initial £60m charge reflects the scale of the disruption: redundancy payments plus the operational costs of winding down four production sites.

For a chain whose sales are rising 7.7%, the calculus is straightforward. Greggs is trading a one-off £60m hit and hundreds of jobs for a recurring £20m annual saving — a payback period of roughly three years on the upfront cost.

The consultation process will determine how many of the 740 roles are ultimately cut. Workers at the four affected factories now face a period of uncertainty that could stretch into 2029.

If the savings materialize on schedule, Greggs will enter 2028 with a leaner manufacturing footprint and £20m a year flowing to the bottom line — a restructuring the company frames as the price of efficient growth.