Greggs, the UK’s largest bakery chain, is cutting 200 jobs due to poor sales in northern England and Scotland.
The group, which operates more than 1,300 bakeries across the UK, will also close 14 of its Bakers Oven shops.
The announcement follows a £3.1m drop in pre-tax profits to £12.5m in the first half of 2006, amid increasing energy costs.
Greggs managing director, Sir Michael Darrington, said: “Some 14 poorly performing shops will be closed and this, together with changes to supply arrangements, regrettably will result in the loss of about 200 jobs.”
The closures will cost the bakery firm about £2.5m but should add £1.25m to its profits in 2007, the firm said.