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Retail & Consumer

Greggs to cut more than 800 jobs as coronavirus slowdown continues

The Newcastle food-on-the-go chain has told staff it would not be profitable it did not reduce costs

Photo issued by Greggs of their new-look stores, with floor markings, protective clothes for staff and screens at counters to protect against coronavirus spreading(Image: PA)

Bakery chain Greggs has announced plans to cut more than 800 jobs as it tries to cope with the ongoing coronavirus pandemic.

The company's chief executive Roger Whiteside has warned that the food-on-the-go chain “will not be profitable as a business” if sales continue at the rates they have been in lockdown, as it was confirmed that 820 staff will be let go.

In a statement posted on the Greggs employee information website earlier this week, Mr Whiteside said: “Covid trading conditions have forced this action onto our business and we are all very saddened by the need to part company with around 820 friends and colleagues, many of whom have worked with us for many years.”

He went on to say that “the battle with Covid hasn’t gone away and is intensifying further” as lockdown measures continue to be in place across the four nations of the º£½ÇÊÓÆµ.

Mr Whiteside added: “At lockdown levels of sales, even after all of the mitigating action that we have taken, Greggs will not be profitable as a business and there can be no room for complacency.”

At the end of September, the Newcastle-based chain said it was in talks with staff to cut hours to try and minimise job losses when the furlough scheme was expected to end in October.

Mr Whiteside told reporters at the time: “Some stores have staff hours which are just off what’s needed for current demand. But others are a long way off and will need significant change.”

At the end of September, Greggs said sales had reached 76.1% of last year’s levels, despite seeing the benefits of its click-and-collect service and its delivery partnership with JustEat.