Greggs could cut around 740 manufacturing jobs and close four factory sites, as the bakery chain prepares for higher inflationary pressures.

The proposed changes, which are expected to take place over the next two-and-a-half years, will see manufacturing operations close at sites in Enfield, North London; North Lakes near Penrith; Pettigrews in Kelso, Scotland; and Seaham, County Durham.

Manufacturing operations at Treforest in Wales will also be affected, although the site will continue operating as a distribution centre.

Greggs said it would also reduce the range of products manufactured at its Clydesmill and Manchester sites, while ending the manufacture of tinned bread at Gosforth.

The business said the proposals would consolidate its manufacturing footprint and allow production to be better aligned with the expansion of its shop estate. A small number of products will also be sourced from specialist suppliers.

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The restructuring is expected to cost around £60m, including disruption and redundancy costs, but Greggs said it would deliver annual savings of approximately £20m by 2029.

The announcement came as Greggs reported improved trading during its third quarter, with like-for-like sales across company-managed shops rising 3.4 per cent in the 13 weeks to 26 September.

Total sales increased 7.7 per cent, supported by new product launches and more settled weather in August and September.

Greggs said current cost inflation remained “well managed” at around 2 per cent for 2026, but warned of “signs of greater inflationary pressures in 2027”, particularly as higher energy costs feed through.

The job cuts come as Greggs continues to expand its retail estate. The chain had 2,796 shops at the end of September and has opened 95 locations so far this year, while closing 38.

It continues to target between 100 and 110 net new shop openings during 2026 and has identified potential for at least 3,500 UK locations.

The company said the manufacturing changes were necessary to meet future capacity requirements “in the most cost-efficient manner”.