High street bakery chain Greggs has announced a major restructuring of its supply chain network, proposing the closure of four manufacturing facilities and the elimination of 740 jobs across the United Kingdom.

Under the proposed measures, production facilities in North Lakes near Penrith, Kelso in Scotland, Seaham in County Durham, and Enfield in Greater London are slated to shut down. However, the company noted that distribution activities will remain operational at the Enfield location. Manufacturing operations at the Treforest facility in Wales will also be scaled back, though that site will likewise continue to function as a distribution hub.

The nationwide overhaul is scheduled to unfold gradually over the next two and a half years as the business shifts parts of its production processes. In addition to the facility closures, Greggs intends to scale back the variety of goods produced at its Clydesmill site in Glasgow and its Manchester location, while ending the production of tinned bread in Gosforth entirely. The company also plans to rely on outside specialist suppliers for certain product lines.

Executives at the Newcastle-headquartered firm emphasized that the company's retail storefronts will remain completely unaffected by the restructuring. Chief Executive Roisin Currie explained that the brand must continuously adapt to shifting consumer demands and preferences. She noted that while the supply chain network remains a core asset, the changes are designed to boost overall operational efficiency and secure the company's long-term market position.

Greggs currently employs roughly 33,000 workers throughout the UK, with the vast majority stationed within its retail branches. Formal consultations with affected employees are scheduled to begin shortly, and management confirmed that no definitive choices have been finalized at this stage.

Implementing the comprehensive modernization plan is projected to cost the business approximately £60 million, covering expenses related to operational disruption and staff severance packages. Conversely, the company anticipates that the consolidation will yield annual savings of around £20 million during the 2028 and 2029 financial years.

The restructuring announcement coincides with positive financial figures for the bakery chain. Sales expanded by 7.7 percent during the three-month period leading up to September 26, when measured against the corresponding timeframe from the previous year. Company leadership attributed this growth to steady progress amid difficult economic headwinds and tight consumer budgets.

Bolstered by favorable trading results and rigorous expenditure management, Greggs anticipates a slightly enhanced financial performance for the entirety of 2026. Expansion efforts have also continued, with the company establishing 95 new shops and closing 38 outlets year-to-date, bringing its total national footprint to 2,796 retail locations.

Reporting based on coverage first published by BBC News. Read the original report at BBC News.