Greggs is to close four manufacturing sites and cut about 740 jobs as part of a sweeping overhaul of its production network, making the move the most significant UK corporate restructuring reported on Monday.

The bakery chain said consultations with affected employees began on 12 October, with closures expected over the next two and a half years. Greggs said the plan would ultimately save about £20m a year across its 2028 and 2029 financial years, although it expects one-off disruption and redundancy costs of roughly £60m.

Production shift

The company is consolidating manufacturing and increasing its use of external suppliers. Greggs described the changes as difficult but necessary as it seeks to make its supply chain more efficient and align production capacity with the changing needs of its growing retail estate.

The announcement came alongside an update showing sales increased 7.7% in the three months to 26 September. Greggs attributed the performance to new product launches and more settled weather, suggesting that customer demand remained resilient despite continuing pressure on household budgets.

Jobs and costs

The proposed closures will affect around 740 roles. Greggs said the restructuring would take place gradually, allowing the business to manage the transition and limit disruption to its shops and customers.

The £60m estimated cost reflects redundancy payments and other expenses associated with reorganising production. Management expects the recurring savings to outweigh those costs from the 2028 financial year onwards.

Wider business backdrop

The decision highlights the pressures facing UK consumer-facing companies, which are balancing resilient sales with elevated labour, property and operating costs. For Greggs, the productivity drive comes as the chain continues to expand its network while adapting its manufacturing model.

The restructuring is likely to be closely watched by investors because it combines near-term financial charges with a longer-term attempt to improve margins. Its success will depend on whether third-party suppliers can absorb additional production without weakening availability, quality or cost control.

Greggs has not yet provided a detailed list of the sites affected. The company’s consultations will determine the final impact on employees and the timing of individual closures.