Manchester United could make up to a further 200 workers redundant, as they step up their restructuring of the corporate side of the club in a bid to save money.
After 250 roles were removed last year, more big cuts are on the way, as the hierarchy, led by part-owner Sir Jim Ratcliffe, look to return the club to profitability following five consecutive years of losses.
A club statement read: “Manchester United is to transform its corporate structure as part of a series of additional measures to improve the club’s financial sustainability and enhance operational efficiency.
“The transformation plan aims to return the club to profitability after five consecutive years of losses since 2019. This will create a more solid financial platform from which the club can invest in men’s and women’s football success and improved infrastructure.
“As part of these measures, the club anticipates that approximately 150-200 jobs may be made redundant, subject to a consultation process with employees. These would be in addition to the 250 roles removed last year.”
CEO Omar Berrada added: “We have a responsibility to put Manchester United in the strongest position to win across our men’s, women’s and academy teams.
“We are initiating a wide-ranging series of measures which will transform and renew the club. Unfortunately, this means announcing further potential redundancies and we deeply regret the impact on those affected colleagues. However, these hard choices are necessary to put the club back on a stable financial footing.
“We have lost money for the past five consecutive years. This cannot continue.”
Last month, in a response to a letter from fan groups about increasing ticket prices at Old Trafford, United responded by saying: “We are currently making a significant loss each year – totalling over £300m in the past three years.
“This is not sustainable and if we do not act now we are in danger of failing to comply with PSR/FFP requirements in future years and significantly impacting our ability to compete on the pitch.”
Last week, United’s quarterly accounts showed a loss of £27.7m for the period, with operating profit tumbling from £27.5m to £3m.
Those latest results showed the decision to extend Erik ten Hag’s contract as head coach in the summer and then fire him and his backroom staff nine games into this season set United back around £10.4m.
The accounts also showed it cost United in excess of £4.1m in compensation and then severance to bring sporting director Dan Ashworth to the club and then sack him.
Free lunches for staff axed
As well as the redundancies, the ‘transformation plan’ will see the end of free staff lunches at Old Trafford – saving over £1m per year, according to the club.
Bonuses for staff will also be reduced this year, with some staff moving from Old Trafford to the Carrington training ground and all of the club’s leadership now to be Manchester-based, including new chief business officer Marc Armstrong, who began work on Monday.
United have confirmed the club’s charitable donations will be focused on the Manchester United Foundation and Manchester United Disabled Supporters’ Association, and their annual donation of £40,000 to the latter will remain unchanged. They are in talks with the Manchester United Foundation about their future levels of contribution, though it is indicated that significant support will continue.
Berrada added: “Our two main priorities as a club are delivering success on the pitch for our fans and improving our facilities. We cannot invest in these objectives if we are continuously losing money.
“At the end of this process, we will have a more lean, agile and financially sustainable football club, while continuing to provide a world-class service to our valuable commercial partners. We will then be in a much stronger position to invest in football success and improved facilities for fans, while remaining compliant with UEFA and Premier League regulations.”
