Manchester United, one of the world's most renowned football clubs, has announced plans to make up to 200 jobs redundant as part of a "transformation plan" aimed at returning the club back into profitability. This follows an initial wave of cost-cutting measures last year that saw about 250 staff members lose their jobs.
In a meeting held on Monday, Manchester United chief executive Omar Berrada informed employees about the impending redundancies. The club stated that this transformation plan is designed to return it back into profitability after five consecutive years of losses since 2019.
The redundancy process is expected to take between three and four months and will affect approximately 150-200 jobs. As of June 30th, 2024, Manchester United had a total workforce of around 1,140 employees; therefore these redundancies would account for nearly 39% reduction in staff numbers.
Financial struggles
Last week's financial results revealed that the club suffered a loss of £27.7m in their second quarter and has lost more than £300m over the past three years. Currently positioned at their lowest finish in Premier League history under Ruben Amorim’s management, these additional measures are being taken with an aim to improve financial sustainability and enhance operational efficiency.
As part of this transformation plan, some staff will be relocated from Old Trafford - Manchester United’s home ground -to Carrington training base while maintaining reduced presence in London. All leadership roles including newly appointed Chief Business Officer Marc Armstrong will be based out of Manchester.
In another cost-saving measure aimed at saving more than £1m annually, free lunches for staff at Old Trafford have been discontinued while catering arrangements remain unchanged at Carrington for rest of season. Despite these cuts however,the annual donation towards Manchester United Disabled Supporters Association (MUDSA) will remain at £40,000. The club is also in discussions with Manchester United Foundation (MUF) about its level of contribution.
Future plans
Co-owner Sir Jim Ratcliffe has been implementing a series of cost-cutting measures since his investment in the club, with the first round of redundancies saving between £40m-£45m. He warned that more "difficult and unpopular decisions" would be taken to get the club back on track. This includes increasing matchday ticket prices to £66 per game without any concessions for children or pensioners.
Ratcliffe is yet to decide whether to rebuild Old Trafford, which could cost around £1.5bn or build a new ground estimated at over £2bn.
These changes reflect Manchester United's commitment towards financial sustainability and operational efficiency amidst challenging times. While these measures may seem drastic, they are deemed necessary for the long-term survival and success of this iconic football club.
