Manchester United Announces Up to 200 Job Reductions: Discover the Reasons Behind the Premier League Club’s Cost-Cutting Measures

Manchester United is preparing to make another 150 to 200 job cuts as part of its cost-saving strategy since Sir Jim Ratcliffe took over. This follows a previous round where 250 staff were let go over the summer. The news was shared in a staff meeting at Old Trafford recently.

These job reductions will affect the team in London, and there will also be changes in food services for employees. The popular staff canteen at Old Trafford will close, though food services at the Carrington training ground will stay the same for now. Eventually, however, employees might only have access to basic options like soup and bread once the main building reopens.

Ratcliffe, who started managing the club in February 2024 after investing, is implementing various cost-cutting measures. Manchester United, still majority-owned by the Glazer family, has faced financial troubles, reporting losses for five consecutive years, totaling £373 million since their last profitable season in 2018-19.

In their recent second-quarter results, United reported a loss of £26.3 million for the current season, which includes costs related to the departures of former manager Erik ten Hag and sporting director Dan Ashworth.

Omar Berrada, the club’s CEO, emphasized their responsibility to put Manchester United in a better position for success in all teams, including men’s, women’s, and the academy. “We must make tough choices to achieve financial stability,” he said. “We cannot continue losing money if we want to improve our facilities and succeed on the pitch.”

To understand the need for cuts, it’s important to note that the club has struggled financially due to costly recruitment and mixed on-field results, which have led to managerial changes. The most recent financial statements revealed that the £26.3 million loss includes significant costs tied to the transitions in management and staffing.

As for the impact of these layoffs, last summer’s redundancies are expected to save the club between £40 million and £45 million annually. The new cuts could save between £18 million and £36 million, depending on the final number of redundancies. However, this comes at a cost, as the club will have to pay redundancy packages. The previous round of cuts cost about £8.6 million in the first quarter alone.

In terms of workforce, United has the largest employee base in the Premier League, averaging 1,140 monthly staff, compared to Manchester City’s 611 and Liverpool’s 1,008. This increase in workforce has been significant over the years, from 799 employees in 2016.

Wages represent a significant expense for Premier League clubs, and United’s wage bill was the highest in England at £384 million at one point, although it has since dropped to £364 million. Despite these cuts, the club continues to face high transfer fees and debt, currently standing at £734 million, much of which stems from the Glazer family’s long-term financial strategies.

The club has implemented many cost-cutting measures, even ending high-profile positions such as Sir Alex Ferguson’s ambassadorial role. Other measures include the withdrawal of company credit cards and cutting perks like free travel for staff during events.

Supporters have also been impacted by these decisions, with increased ticket prices and the removal of discounts for certain age groups. Fan groups have expressed concern about future price hikes amidst ongoing struggles to perform well on the field.

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Manchester United, Premier League, Sports Business