Greggs' Seaham manufacturing operations face closure as 740 jobs nationwide are put at risk
Bakery giant Greggs is planning to close its Seaham manufacturing operations as part of a series of cuts which could see around 740 jobs lost nationwide.
The High Street chain said the changes will be rolled out over the next two-and-a-half years as it looks to streamline operations and prepare the business for the future.
Greggs said its shops will not be affected by the shake-up although unions have slammed the move as the company has also announced a 7.7% growth in sales.
The restructuring is expected to cost around £60 million, including redundancy payments and disruption costs, although Greggs expects it to deliver savings of around £20 million across 2028 and 2029.
Chief executive Roisin Currie said the proposals were designed to keep Greggs a “strong, sustainable business for decades to come”, adding that the company needed to keep evolving alongside changing customer expectations.
The firm will shortly begin consultations with affected employees and union representatives and stressed that “no final decisions have been made”.
As part of the proposals, Greggs plans to close four manufacturing sites at Enfield, in Greater London, North Lakes, near Penrith, in Cumbria, Pettigrews, in Kelso, Scotland, and Seaham.
Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union (BFAWU), said: “The BFAWU is deeply concerned by today’s announcement from Greggs, which places hundreds of workers and their livelihoods at risk as part of proposed changes to the company’s manufacturing network.
“Our immediate priority is our members, their jobs, their families and the communities that could be affected by these proposals.
“Greggs is clear in its own announcement that the business continues to perform strongly, that more customers are choosing Greggs than ever before, and that it is investing significantly to support further growth.
“Against that backdrop, our members will understandably be asking why their jobs and livelihoods should now be put at risk in the name of efficiency and future progression.
“The workers affected by these proposals have played a huge part in getting Greggs to where it is today.
“They cannot simply be dropped like stones as the company moves on to its next phase of growth.”
The number of jobs facing the axe at Seaham has still to be confirmed.
It is understood that non-Greggs food is also manufactured at the site.