Greggs PLC looking at job cuts and reduced hours as furlough scheme ends

() said it is to start consultations with unions about job losses after completing a review of the business.

The bakery chain said that with the end of the furlough scheme in October it had to ensure employment costs reflected the level of demand expected from November.

Greggs added it wants to minimise job cuts by reducing hours worked in shops, which is in line with a new job support scheme announced last week by chancellor Rishi Sunak.

The Newcastle-based company said is also restarting its shop opening scheme with a net 20 new outlets scheduled to start trading in 2020.

Trading remains uncertain, it added, with new lockdowns recently imposed across much of the North of England likely to lead to further supply chain disruption and to keep people at home.

Greggs said trading in September had improved over August and was running at 76.1% of the level a year ago and at an average of 71.2% since it reopened its estate in July.

August had been affected by the chain not being able to access the Eat Out to Help Out scheme, but people had since started to go out more, which had boosted the four weeks to 26 September.

In the 39 weeks so far of the current financial year, Greggs said it had closed a net 11 shops to give a total of 2,039.