One of Britain's most familiar high street brands has announced a major restructuring that could put around 740 jobs at risk.
Greggs� said on September 30 that it plans to close four manufacturing sites over the next two and a half years as it reshapes its production network.
The proposed closures are expected to affect approximately 740 manufacturing roles, although the company has begun a consultation process with employees, trade unions and representatives before final decisions are implemented. �
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The announcement creates an unusual contrast for the bakery chain. Greggs is cutting manufacturing jobs while simultaneously reporting stronger sales, improving its 2026 profit outlook and continuing an ambitious expansion of its UK shop network.
Why is Greggs cutting 740 jobs?
The job reductions are part of a wider review of how Greggs manufactures and distributes food across Britain.
The company plans to consolidate parts of its manufacturing operations and close four production sites.
Greggs estimates that implementing the restructuring will cost approximately £60 million, including redundancy payments, disruption and other expenses associated with relocating production. �
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Once completed, however, the company expects the changes to generate around £20 million in annual savings.
Those benefits are expected to emerge across the 2028 and 2029 financial years. �
The Wall Street Journal
Greggs says the manufacturing overhaul is intended to create a more efficient production network capable of supporting a significantly larger shop estate.
Are Greggs shops closing?
The manufacturing announcement does not mean hundreds of Greggs shops are disappearing from British high streets.
The approximately 740 jobs at risk are linked to manufacturing operations rather than the company's retail shops, according to current information released about the restructuring. �
The Independent
In fact, Greggs is continuing to open new stores.
The company opened 95 new shops during the year through September and closed 38 locations, including 20 relocations.
That produced 57 net new openings.
At the end of the third quarter, Greggs was operating 2,796 shops across the UK. �
Retail Bulletin | Daily UK Retail News
The company still expects to add approximately 100 to 110 net new shops during 2026.
Greggs wants at least 3,500 shops
The longer term expansion plan is even more ambitious.
Greggs has set a target of operating at least 3,500 locations across Britain, significantly above its current estate.
That expansion increasingly includes shops outside traditional town and city centre locations.
Greggs has been opening outlets at transport hubs, retail parks, supermarkets and roadside locations.
The company recently opened its 50th drive through site in Sunderland. �
Retail Bulletin | Daily UK Retail News
It has also been experimenting with a smaller format called Bitesize Greggs.
The fifth Bitesize location opened inside a Tesco supermarket in Southwark during the third quarter. �
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These smaller outlets are designed for locations where a traditional full size Greggs shop may not be practical.
Sales are actually rising
The timing of the job cuts could surprise customers because Greggs is not announcing them alongside falling sales.
Quite the opposite.
Total sales increased 7.7 percent during the third quarter of 2026, according to the company's latest trading update.
Sales at company managed shops open for at least a year increased 3.4 percent during the 13 weeks ending September 26. �
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That represents an improvement from the first half of 2026, when comparable sales grew 2.1 percent.
For the year to date, total Greggs sales are up 7.4 percent, while comparable sales at company managed shops have increased 2.6 percent. �
Retail Bulletin | Daily UK Retail News
The improved performance has prompted the company to raise its expectations slightly.
Greggs now anticipates a modestly improved full year profit outcome compared with its previous forecast of around £172 million, Reuters reported. �
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New drinks and salads helped sales
Greggs has also been changing what it sells.
The chain remains famous for sausage rolls, steak bakes and pastries, but drinks and other food categories are becoming increasingly important.
The company said its summer iced drinks performed strongly, including Matcha and Cherry Lemonade products.
Greggs also relaunched its salad range, which helped support sales growth during the quarter. �
Retail Bulletin | Daily UK Retail News
More settled weather during August and September also helped trading.
Hot weather can create challenges for businesses traditionally associated with baked goods and hot food.
Greggs experienced difficult conditions during periods of unusually hot weather earlier in the year.
Inflation is becoming a concern again
Despite stronger sales, the company is warning that costs remain a significant challenge.
Greggs expects its overall costs to increase by approximately 2 percent during 2026, according to its latest update.
More importantly, the company says there are signs that inflationary pressures could become stronger again during 2027. �
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Food businesses are particularly exposed to changes in ingredient prices, wages, energy, transportation and packaging.
Greggs has built much of its appeal around offering relatively inexpensive food and drinks.
That means managing rising costs without significantly increasing prices can be especially important to its business model.
The manufacturing restructuring is partly designed to improve efficiency as those pressures increase.
The company employs around 33,000 people
Greggs has become one of Britain's largest food businesses.
The company employs approximately 33,000 people, meaning the proposed manufacturing reductions represent only part of its overall workforce. �
The Wall Street Journal
The company also continues to recruit for numerous positions across its shops, distribution network and other operations.
Greggs' careers website was advertising new roles across Britain as the restructuring announcement was made. �
Greggs Careers
That reflects the unusual nature of the company's current strategy.
Greggs is reducing employment in some parts of its manufacturing network while expanding other parts of the business.
Greggs is changing where people buy its food
The expansion strategy shows how the company is attempting to move beyond its traditional high street model.
New Greggs shops increasingly appear in petrol stations, motorway service areas, supermarkets, airports and railway stations.
Drive through locations are another growing part of the business.
Its Bitesize concept pushes that strategy further by allowing Greggs to operate from compact spaces with a smaller selection of popular products.
The first Bitesize Greggs opened at Sevenoaks railway station in November 2025.
Further sites followed at Dartford station, Cheshire Oaks Designer Outlet and Tesco Southwark. �
Bakery Info
The format gives the company another way to reach customers without requiring the space needed for a conventional bakery shop.
What happens to the affected workers?
The proposed manufacturing changes will not happen immediately.
Greggs says the restructuring will be implemented over approximately two and a half years.
The company is consulting trade unions, employee representatives and workers affected by the proposals. �
The Wall Street Journal
The final number of redundancies could therefore depend on the outcome of that process and whether some employees can move into other roles.
The estimated £60 million restructuring cost includes redundancy payments as well as expenses associated with moving production between facilities. �
The Irish News
A bigger Greggs with fewer factories
The September 30 announcement reveals how dramatically Greggs is changing behind the familiar bakery counters seen across Britain.
Customers may ultimately notice little difference when buying a sausage roll or coffee.
Behind the scenes, however, the company intends to produce and distribute its food through a more concentrated manufacturing network.
The strategy carries a significant human cost, with around 740 manufacturing positions potentially disappearing.
At the same time, Greggs is opening new stores, testing new formats and working toward a network of at least 3,500 UK locations. �
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That means the latest announcement is not primarily a story about Greggs becoming smaller.
It is about the company attempting to become larger while changing how and where its food is produced.
