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Greggs has revealed plans to close several factories which will see the loss of around 740 jobs.
The iconic high street bakery chain said it proposed to close four factories in the UK, including one in London.
Good news for sausage roll fans is that no retail bakeries are affected.
The closure of the affected manufacturing sites will be staggered over the next two and a half years.
Which Greggs factories could close?
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Greggs sites earmarked for potential closure include Enfield Greater London, North Lakes near Penrith, Cumbria, Pettigrews in Kelso, Scotland, and Seaham, County Durham.
While manufacturing at Enfield might stop, it would continue to run as a distribution base.
Manufacturing could also be affected at the Treforest, Wales, site, but it would continue to distribute baked goods.
The range of products made at the Clydesmill Glasgow and Manchester factories will be reduced, while the Gosforth site will no longer manufacture canned bread, the proposal details.
However, Greggs insisted that “no final decisions have been made.”
Why is Greggs planning to close the site?
The company said it wanted to consolidate production operations, and it would receive a small number of products from specialized suppliers.
The restructuring is expected to cost Greggs around £60 million, including redundancy payments.
But over the 2028-29 financial year, the plan could save it around £20 million.
Greggs is set to begin a consultation with affected workers and unions.
Chief executive Roisin Currie said: “To continue to build a successful business for the future, we must continue to evolve alongside changing customer expectations.”
She said the plans would ensure Greggs “remains a strong, sustainable business for decades.”
She said the proposals are aimed at strengthening the company’s manufacturing network, boosting efficiency and ensuring it is well placed to deliver “quality, value and service” to customers.
How many sausages does Greggs sell?
Despite challenges ranging from the weather to changing food preferences, sausage rolls aren’t going anywhere.
Last year, Greggs is said to have sold 300 million meat pies.
You’re likely to spot a Greggs in most towns, cities and petrol stations as it boasts 2,796 stores across the UK.
Greggs’ retail sales grew by 7.7% in the three months to September 26 compared to year-on-year, but it said that progress in the face of “challenging market conditions.”
Greggs had a boost of new product launches and more assured weather in August and September after record heatwaves this summer.
The company employs around 33,000 people in the UK, most of them in the bakeries.
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