Greggs announces plans for major closures as 740 jobs on the line

Greggs ‘cost-efficient’ announcement could cost 740 jobs in the UK

The popularity of the bakery chain’s low cost baked goods and pastries has taken over the UK, becoming the largest fast-food business in the country.

The proposed cuts come as Greggs reported a 7.7% increase in sales in its most recent quarter, a jump from 7.2% in the first half of the year. 

The bakery chain said that it has been consulting on the closure of four of its factories, a move that would initially cost £60m and make 740 jobs redundant over the next two years.

However, Greggs project savings of up to £20m by 2028, which would only keep on increasing as the years go on, which was a major reason leading to the decision. 

The company spoke about the closure, saying that the “immediate priority is to minimise the impact on our people where possible. 

“We will enter into a consultation period shortly to work with trade unions and employee representatives of those affected to refine and develop these proposals.”

Greggs’ road to becoming the UK’s largest fast-food chain isn’t to be taken in vain. 

Rapidly growing over the last year, the company had set to open over 100 new locations by the end of 2026, with 57 new shops launched so far in the year.

A larger range of salads and chicken rolls, as well as iced matcha lattes, have also played a crucial role in boosting sales over the summer.

However, the company has said that “signs of greater inflationary pressures in 2027” was a turning point in the decision making period, despite the “modestly improved” sales throughout this year.

The bakery chain has been tackling internal rising wages, energy and packaging costs by increasing prices on best-selling goods. 

Greggs’ famous sausage rolls are now £1.35 after a 5p price hike, while lattes have increased by 10p, going to £2.25.

The closure is said to affect the following factories:

• Enfield, north London
• Penrith, Cumbria
• Kelso in Roxburghshire, Scotland
• Seaham, County Durham

Despite the impending closures, Greggs confirmed that it will continue to run distribution operations from Enfield.

The company will take on discussions with workers unions and tackle redundancy packages for the 740 jobs on the line.