The United no.2 has voiced his opinion on the now Arsenal striker's £16 million Deadline-Day switch.
The 23-year-old England striker completed a £16 million move to Arsenal in the dying hours of the transfer window and Giggs says it is always disappointing when a homegrown player leaves the club.
Welbeck has since scored twice for England at Switzerland, giving Gunners fans hope that he can fill the void up front left by Olivier Giroud's broken foot.
And Giggs' comments might suggest Welbeck's move was more out of choice than the Manchester club forcing him out.
“Okay, Danny [Welbeck] has left, which is obviously disappointing because you never want to see a homegrown player leave," Giggs told the Soccerex conference in Manchester.
The 40-year-old has, however, backed boss Louis van Gaal to bring more youth players through at Man United despite Welbeck's exit.
“But this is a manager who gave [Clarence] Seedorf his chance, gave [Patrick] Kluivert his chance, gave [Andres] Iniesta his chance, Xavi, Thomas Muller.
“He’s got a track record of giving young players a chance and Tyler Blackett has played every game so far this season.
“Underneath [Robin] Van Persie, [Wayne] Rooney, you have got [Adnan] Januzaj, you have got James Wilson."
United host Queens Park Rangers at Old Trafford in their next Premier League clash on Sunday.