Greggs plans to close four UK factories, putting up to 740 jobs at risk

Bakery chain Greggs has announced plans to close four of its factories in the UK, a move that could result in up to 740 job losses over the next two and a half years, according to a report by The Guardian.

The company said it was launching a consultation process on the closures, which the report says would initially cost around 60 million pounds when accounting for disruption and redundancy payments, before generating an estimated 20 million pounds in savings each year by 2028.

Greggs framed the decision as necessary to deliver growth in what it described as the most cost-efficient manner, according to The Guardian, even as the company reported strong recent trading performance, with total sales growth accelerating to 7.7% in the third quarter.

The Guardian's report does not specify which four factories are slated for closure or their locations, nor does it detail what alternative production capacity, if any, Greggs plans to bring online to offset the closures. It also does not indicate whether staff at the affected sites would be offered redeployment to other locations within the company.

The announcement comes as Greggs continues to expand its store network and product range across the UK, illustrating a divergence between strong sales growth in its retail operations and a restructuring of its manufacturing footprint aimed at cutting costs over the medium term.