Greggs has announced plans to shutter four manufacturing sites and cut approximately 740 jobs over the next two and a half years as part of a centralized production strategy. The restructuring comes as the bakery chain reports a surge in sales and an upgraded profit outlook, signaling a pivot toward larger, more efficient supply chain hubs to support its long-term retail expansion.
The closures will target facilities in Enfield (North London), North Lakes near Penrith, Pettigrews in Kelso, and Seaham in County Durham. The company confirmed that retail operations and high street shops will not be affected by these cuts, with the transition scheduled to begin no earlier than the second quarter of 2027.
Consolidation and Cost Efficiency
The restructuring is expected to cost Greggs an estimated £60 million upfront. However, management projects the move will generate roughly £20 million in annual savings by 2028. This shift to a more centralized manufacturing network is designed to sustain the company’s growth.
CEO Roisin Currie indicated that the consolidation is a proactive measure against future economic shifts, specifically warning of “greater inflationary pressures” anticipated in 2027. By streamlining production now, the company aims to protect margins while continuing its aggressive expansion into evening trade and digital sales.
Financial Performance and Market Reaction
Despite the reduction in manufacturing headcount, Greggs continues to demonstrate strong financial momentum. In the 13 weeks leading up to September 26, 2026, total sales rose by 7.7%. This growth was supported by the introduction of new menu items, including iced matcha lattes and the Steak & Stilton Bake, which have helped diversify the brand’s appeal beyond its traditional pastry range.
Following the announcement on September 30, 2026, shares in Greggs rose approximately 7% to a two-month high. Investors responded positively to the company’s upgraded 2026 profit guidance, which moved from “broadly in line with 2025” to a “modestly improved outcome.”
The company’s ability to upgrade its outlook while navigating a major manufacturing overhaul reflects its current market dominance. While the loss of 740 specialized manufacturing roles marks a significant shift for the regional economies of the affected sites, the broader business remains focused on a high-volume retail model that requires more sophisticated, large-scale production capabilities than its current aging facilities can provide.
