Greggs Announces 740 Job Cuts Despite Strong Sales Growth

Greggs, the major UK bakery and café chain, has announced plans for 740 job cuts, a significant redundancy announcement that highlights growing pressure on retail employers managing rising employment costs. The cuts come despite the company reporting third-quarter sales growth of 7.7%, suggesting that operational efficiency and cost pressures rather than weak demand are driving the decision.

Broader retail sector challenge

Greggs' redundancy proposal is part of a wider pattern affecting UK retail this year. Recent data shows:

• Retail sector confidence has fallen sharply, with the net employment balance dropping from +23 to +1 in recent quarters
• Small businesses (1–9 employees) have cut back hiring most aggressively as labour costs rise
• Hospitality and retail have borne the brunt of payroll pressures from minimum wage increases and National Insurance contributions

The redundancy follows the government's increases to the National Living Wage (£12.71 per hour from April 2026) and higher Employer National Insurance Contributions, both of which take significant chunks from payroll budgets. Hospitality and food service employers have been particularly affected, with many reviewing staffing models to absorb these costs.

As a foreign worker in the UK on a Skilled Worker visa or other employment visa, understanding these redundancy trends matters: retail and hospitality sectors employ many migrants, and redundancy patterns can signal tightening job availability in those areas. If you work in retail or food service, keep your CV updated and monitor your employer's financial performance. UK employment law now requires employers cutting 20+ jobs to undertake collective consultation with workers, with much stiffer penalties (up to 180 days' pay) if they fail.

Sources

• Fair Enough — UK Redundancy Announcements 2026