Warburtons has announced it will close its Blackpool bakery on Brinwell Road, resulting in 55 redundancies, following a 90-day consultation process.
The decision to shut the bakery has been made to ensure the bakery brand can maximise its manufacturing capacity and produce its products more efficiently, according to Warburtons.
All 73 affected employees have been notified of the conclusion of the consultation, with 55 compulsory redundancies made as a result. Eighteen staff have either relocated to other parts of the business, found alternative roles, or taken early retirement.
The consultation process began on 27 September with Warburtons citing the proposed closure was down to "continued challenging economic environment and changing demands on our business".
Jonathan Warburton, chairman and chief executive, said: "Closing a bakery is the hardest decision our family business has to make. The last year has been particularly challenging due to a number of changeable factors including further pressure on household budgets and an increasingly competitive market.
"The changes to our manufacturing operations ensure we can continue to meet the demands of our customers and consumers and will ensure a stable future for the business and our 4,500 employees."
The bakery is set to close at the end of this month.