Greggs will cut up to 100 jobs in Wales and 60 in Scotland as part of a manufacturing restructure.
According to the Bakers, Food and Allied Workers Union (BFAWU), from 91 to 120 jobs are at risk in the Greggs Treforest factory in Rhondda Cynon Taf as the baker has halted production of doughnuts and confectionery at the site. Greggs will also slash 50 to 60 jobs at its Cambuslang factory in Clydesmill, Scotland.
According to local newspaper reports in the area, more than 200 people are employed at the factory and it was recently granted planning permission for an extension. Staff were told about the cuts last week and have been asked to consider taking voluntary redundancy.
A Greggs spokeswoman said: “Following the announcement in March 2016 regarding our planned £100m investment in our supply chain over the next five years, we are now planning the next phase of this investment.
“This will increase and reshape our manufacturing and distribution capabilities and enable us to support shop expansion of substantially more than 2,000 shops, as we continue to compete effectively in the growing food-on-the-go market.
“Our proposal is that Clydesmill becomes a Combined Distribution and Production Centre of Excellence with increased shop distribution capacity for Scotland and production focused on certain products.
“These proposals will create new jobs in shops, logistics and distribution as we grow shop numbers, however, there will be fewer jobs in manufacturing.
“We have entered into a period of consultation with our people regarding the proposals.”
