Manchester United has announced plans to reduce its workforce by up to 200 positions in a bid to restore profitability, following a series of financial losses stretching back five years.
The decision was communicated to employees by the club’s Chief Executive, Omar Berrada, during a meeting on Monday, marking a continuation of cost-cutting efforts initiated last year under co-owner Sir Jim Ratcliffe.
Approximately 250 staff were previously laid off in what was described as the first phase of the austerity measures.
The club, in an official statement, explained that this latest round of job cuts forms part of a wider “transformation plan” designed to achieve financial stability after accruing losses annually since 2019.
The consultation process regarding the redundancies is expected to span three to four months, affecting potentially 150-200 employees out of a total workforce of 1,140 as of 30 June 2024.
Last week, Manchester United disclosed a £27.7 million loss in their second-quarter financial results, contributing to a cumulative loss of over £300 million in the past three years.
The team’s performance has also been underwhelming, currently positioned 15th in the Premier League following a 2-2 draw with Everton on Saturday.
In addition to workforce reductions, the transformation plan will see some staff relocated from Old Trafford to the Carrington training base, with a reduced operational presence in London.
Leadership positions, including newly appointed Chief Business Officer Marc Armstrong, will be based in Manchester.
Other cost-saving measures include ending free lunches at Old Trafford, which are projected to save over £1 million annually, although catering at Carrington will remain unchanged for the current season.
Berrada emphasised the necessity of these “hard choices” to strengthen Manchester United’s financial foundation, crucial for investing in the success of the club’s men’s, women’s, and academy teams.
He highlighted that continuous financial losses hinder the club’s ability to invest in on-field success and facility improvements.
Despite the austerity, Manchester United has committed to maintaining its annual £40,000 donation to the Manchester United Disabled Supporters Association and is currently discussing funding levels with the Manchester United Foundation.
These measures follow a warning from Ratcliffe last December that more “difficult and unpopular decisions” were on the horizon to align the club with his vision, including a contentious increase in matchday ticket prices and deliberations over the future of Old Trafford, with potential rebuilding costs estimated between £1.5 billion and over £2 billion.
The restructuring under Ratcliffe’s Ineos group, which acquired a significant stake in the club in February 2024, has already seen several high-profile changes, including the sacking of manager Erik ten Hag and his coaching staff, costing £14.5 million, and substantial losses reported in the latest financial accounts.
