Greggs to Cut 740 Jobs as Automation Replaces Workers in Four Factories

Greggs Announces 740 Job Cuts in Automation Drive

Greggs has announced plans to cut 740 jobs and close four factories as it replaces human workers with automated machinery. The bakery chain said the changes, expected to take place over the next two and a half years, are needed to keep up with demand as the business grows.

Automation to Replace Staff at Four Sites

The company will start installing more automated machinery instead of relying on its workforce at the sites, making the existing factories redundant. The job cuts are explicitly linked to the introduction of automation, according to the announcement.

Strong Sales Performance Precedes Restructuring

The announcement came as Greggs reported a 7.7pc rise in sales in the three months to the end of September, with sales at its established shops up 3.4pc. The stronger performance, helped by new products including its steak and Stilton bake and iced drinks, led Greggs to raise its expectations for profits this year. Shares in Greggs were up 6pc on Wednesday morning after the announcement.

New Sites and Expansion Plans

Greggs has opened 95 shops this year, taking its total to 2,796. It expects to open another 100 to 110 more shops than it closes during 2026. The company is also spending heavily on two new sites in Derby and in Kettering, Northamptonshire, which will help it supply more shops as the business grows. The Derby site will start to operate this year while the Kettering site is set to open in 2027. Greggs said the two sites would eventually give it enough capacity to supply at least 3,500 shops.

The new sites will also use more machinery to move and sort food. At Derby, machinery will handle frozen food, while Kettering will use it to move chilled and room-temperature food around the site. Greggs said the new sites would make its food-making and delivery network more efficient, although they would increase its costs next year before beginning to save money. The company warned that there were also signs costs would rise more quickly in 2027.

Financial Impact and Consultation

Greggs said the four proposed closures would cost about £60m, including £40m spent on the changes themselves, as well as the cost of closing the sites and making workers redundant. Once the changes are complete, Greggs expects them to save about £20m a year. The savings are expected to come through in 2028 and 2029.

The job cuts follow a strong first half for Greggs. Sales rose 7.2pc to £1.1bn in the six months to June, while pre-tax profits jumped almost 20pc to £76m. Greggs said its immediate priority is to minimise the impact on its people where possible. It said it would now consult trade unions and workers’ representatives about the proposals.

Sources

• Greggs to axe hundreds of jobs after replacing humans with robots