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Tuesday, 02 September 2014

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Baker Greggs set to shed 410 jobs

Greggs the baker is set to axe 410 jobs as part of a restructure designed to cut costs.

Greggs shop photo
Greggs

The firm is proposing to transfer all of its 79 remaining shops that still operate in-store bakeries to supplies from its regional bakeries.

This, says the company, would involve closing the in-store bakeries and may result in 300 jobs being made redundant. This would take between 12-18 months.

"Wherever possible we would look to offer existing vacancies to the employees who work in our in-store bakeries but anticipate that many will leave the business," it adds.

In addition, Greggs is looking to restructure its management and support teams in order to compete in the food-on-the-go market. This may mean 110 job losses.

There is no indication as to where jobs may be lost. The firm hopes to implement the changes this year.

The firm is to enter a consultation period with trade unions and employee representatives "to refine and develop the proposals".

The statement adds: "The proposed changes would result in one-off redundancy costs and asset impairment charges amounting to £9 million in 2014 of which £8m would be a cash cost.

"We anticipate that the ongoing benefit of the cost reduction would be £6m per year from mid-2015 and that, excluding the one-off costs, there would be a benefit in 2014 of £2m."

  • Greggs - which has 1,671 shops across the country - reported a 4.8 per cent rise in total sales for the Christmas and New Year period, with like-for-like sales up 3.1 per cent.
  • The company, which employs about 20,000 people, says it expects its full year results to be in line with previous expectations when they are announced on February 26.

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