Greggs to axe around 740 jobs and shut Scottish factory amid cost-cutting measures

Greggs has said it plans to shut four factories, including one in Scotland, with the loss of about 740 jobs.

The high street bakery chain said the proposed changes, which will take place over the next two-and-a-half years, will see it relocate parts of its manufacturing process.

A factory located in Kelso, in the Scottish Borders, is one of four set to close.

The trade union Usdaw also said its members at Greggs’ Clydesmill Bakery in Cambuslang had been briefed on the potential of redundancies.

Greggs also plans to close sites at Enfield in Greater London, North Lakes near Penrith, and Seaham in County Durham. It will continue to run distribution operations from Enfield.

The proposals will also impact manufacturing operations at its Treforest site in Wales, but this will continue as a distribution centre for business.

It said this will consolidate its manufacturing operations, with the firm set to source a small number of products from specialist suppliers.

Greggs retail shops will not be affected by the changes.

The shake-up will cost the firm around £60m, including disruption costs and redundancy payments.

But it said the plans will save it around £20m across the 2028 and 2029 financial years.

It came as the retail business revealed that sales grew by 7.7% in the three months to September 26, compared with the same period a year earlier.

Trading improved across the quarter as Greggs benefited from product launches and “more settled weather” in August and September.

It said this represented progress in face of “challenging market conditions”, as consumer finances continue to come under pressure.

Like-for-like sales grew by 3.4% across its managed stores, with overall growth buoyed by the opening of new shops.

Greggs said it has opened 95 new shops and closed 38 in the year to date, taking its overall estate to 2,796 stores.

It means the company has had 57 net new openings, with predictions it will have between 100 and 110 shops on a net basis by the end of the year.

The retailer stressed that current cost inflation is “well managed” and likely to stay around 2% for 2026.

However, bosses warned that there are “signs of greater inflationary pressures in 2027” as higher energy costs feed through.

Chief executive Roisin Currie said on Wednesday the group needs to improve efficiency in its operations to help deliver value to its customers.

“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 said.

“We believe doing this makes us future-proofed for modern times.”

Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union (BFAWU), said: “The BFAWU is deeply concerned by today’s announcement from Greggs, which places hundreds of workers and their livelihoods at risk as part of proposed changes to the company’s manufacturing network.

“Our immediate priority is our members, their jobs, their families and the communities that could be affected by these proposals.

“Greggs is clear in its own announcement that the business continues to perform strongly, that more customers are choosing Greggs than ever before, and that it is investing significantly to support further growth.

“Against that backdrop, our members will understandably be asking why their jobs and livelihoods should now be put at risk in the name of efficiency and future progression.

“The workers affected by these proposals have played a huge part in getting Greggs to where it is today.

“They cannot simply be dropped like stones as the company moves on to its next phase of growth.”