Hundreds of jobs are at risk – 740 according to a report by the BBC – after Greggs proposed changes to its manufacturing operations to consolidate production across a smaller number of sites.
Under the plans, Greggs would close its manufacturing sites in North Lakes, Pettigrews, Seaham, Enfield and Treforest. The proposals follow a review of Greggs’ manufacturing network, which the company said was aimed at “ensuring its operations remain efficient and able to support future growth.”
It said that its distribution operation at Enfield would remain unchanged, while Treforest would also continue to operate as a distribution centre, despite the end of manufacturing.
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Newcastle-based Greggs, one of the North East’s most successful brands, has also proposed to reduce the range of products made at its Clydesmill and Manchester sites, while retaining manufacturing operations at both locations.
Further, it plans to end the manufacture of tinned bread at Gosforth. If implemented, Greggs would focus its manufacturing operations across six sites, – Clydesmill, Gosforth, Balliol, Leeds, Manchester and Derby. It said that its retail estate would not be affected by the proposals.
The company said it will shortly begin a consultation with affected employees and their union representatives, although no final decisions have been made yet. The proposed changes come as Greggs continues to expand its shop estate. The retailer has grown from 2,181 shops in 2021 to 2,796 currently and employs around 33,000 people.
Since the start of 2024, it has invested more than £300m in its manufacturing and logistics network, increasing capacity to support a target of at least 3,500 shops across the UK. Greggs said the review found that owning and operating its manufacturing and logistics network remained a “key strength, but that consolidating some production and sourcing a small number of products from specialist suppliers could improve efficiency”.
Roisin Currie, chief executive of Greggs, said: “Greggs is a strong and growing business and we continue to invest significantly in our future. To continue building a successful business for the future, we must keep evolving alongside changing customer expectations. We want to ensure Greggs remains a strong, sustainable business for decades to come.
“Greggs manufacturing and logistics network remains a key strength of the business, and these proposals are intended to strengthen our manufacturing network, improve efficiency and ensure we remain well placed for the future while continuing to deliver the quality, value and service our customers expect.”
