Newcastle-based Greggs said on Wednesday it has launched a consultation exercise that will consider proposals that could lead to the closure of four of its manufacturing sites and the loss of 740 jobs.
Greggs said it has carried out a comprehensive review to determine where its future manufacturing activity should most effectively be located.
“This may result in a total of circa 740 roles becoming redundant over a period of two and a half years,” said Greggs.
“We believe such changes, whilst difficult, are necessary to ensure Greggs continues to meet capacity requirements for growth in the years ahead in the most cost-efficient manner.
“Our 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 shares rose as much as 6%.
The news on potential job cuts came in a third-quarter trading update in which Greggs said total sales were up 7.7% for the 13 weeks to September 26, 2026, and 7.4% for the 39 weeks to September 26.
Company-managed shop like-for-like (LFL) sales were up 3.4% for the 13 weeks and 2.6% for the 39 weeks.
“Our menu innovation continues to resonate with customers across multiple categories,” said Greggs.
“During the summer, strong demand for our iced drinks range, including Matcha and Cherry Lemonade flavours, supported growth in the drinks category, while the relaunch of our salads has also driven encouraging sales growth.
“We have also seen continued momentum in sales of healthier and protein-led options, supported by the expansion of our functional drinks range, reflecting growing customer demand for these types of products.
“As we move into the autumn, we remain focused on bringing customers exciting new flavours across the Greggs favourites they know and love.
“This includes the highly successful launch of our Steak & Stilton Bake, alongside a range of seasonal hot drinks, hot sandwiches and sweet treats designed to support lunch and snacking occasions throughout the season.”
In its outlook, Greggs said: “Our two new distribution centres in Derby and Kettering will become fully operational in 2026 and 2027 respectively and will support the next phase of business growth.
“As previously communicated, the associated overheads will increase costs in 2027, before contributing to profitable growth thereafter.
“Improved trading performance in recent months and continued strong cost control now leads us to expect a modestly improved outcome for 2026.”