Greggs business is growing but 400 jobs are cut

There seems to be a Greggs on every corner and in some towns there are several stores. This must be helping the food retailer to produce decent profits, but those profits aren’t keeping all of their employees in work.

Management at Greggs the bakers said that their range of sandwiches, cakes and pasties sold well during the Christmas period and as a result they were able to announce that trading was up by 3.1% for the 5 weeks ending on 4th January. It represented a great finish to a difficult year for Greggs but it hasn’t stopped 400 of the firm’s employees joining the dole queue.

The 400 jobs are made up of 300 branch staff positions as the firm is scrapping in-store bakeries for 2014 at 79 branches nationwide. There will be a further 100 jobs cut from non-branch positions as the firm is cutting management roles as part of a restructuring and streamlining initiative.

"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," Greggs said in a statement.

This is a bit of a shock for the industry as Ronnie Draper, secretary of Bakers Food and Allied Workers Union explained: “It's come out of the blue. In the past the company has had profit warnings but we never expected this. It's devastating for the people who will be affected. We will look to save as many jobs as we can.”

The majority of the Greggs branches affected by the move are those that were acquired when Bakers Oven was taken over in 1994, so the south-east is the worst hit area of the country. The firm are working with unions to “refine the proposal” but they added that they have to make these cuts in order to save £6million a year.

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