Man Utd: Club Statement Reveals Up to 200 Potential Job Cuts and End of Free Lunches for Old Trafford Staff
Manchester United Confirms Up to 200 Potential Job Cuts as Cost-Cutting Measures Continue
Manchester United has announced that up to 200 more jobs may be made redundant as part of ongoing cost-cutting measures, with free lunches for staff at Old Trafford also set to be discontinued. CEO Omar Berrada emphasized the need for financial stability, stating, “We have lost money for the past five consecutive years. This cannot continue.”
The club is intensifying efforts to restructure its corporate operations to return to profitability, following the removal of 250 roles last year. Part-owner Sir Jim Ratcliffe and the club’s leadership are focused on improving financial sustainability while maintaining competitive performance on the pitch.
A club statement outlined the objectives of the transformation plan, stating:
*”Manchester United is set to overhaul its corporate structure as part of additional measures aimed at enhancing financial stability and operational efficiency. The plan seeks to restore profitability after five consecutive years of losses since 2019, creating a stronger financial foundation to invest in both men’s and women’s football success, as well as infrastructure improvements.
“As part of these changes, approximately 150-200 jobs may be made redundant, subject to a consultation process with employees. These reductions would be in addition to the 250 positions eliminated last year.”*
Berrada acknowledged the difficult nature of these decisions but stressed their necessity, saying:
“We are implementing a series of transformative measures to renew and strengthen the club. Unfortunately, this includes the announcement of further potential redundancies, which we deeply regret. However, these tough choices are essential to securing Manchester United’s long-term financial stability.”
Financial Challenges and Cost-Cutting Measures
Manchester United recently reported a loss of £27.7 million for the last financial quarter, with operating profit plunging from £27.5 million to £3 million. The club has been grappling with significant expenditures, including:
- £10.4 million in compensation for terminating Erik ten Hag and his backroom staff after extending his contract just months prior.
- Over £4.1 million spent on hiring and then dismissing sporting director Dan Ashworth.
The club also justified its decision to increase ticket prices, citing over £300 million in losses over the past three years and the need to comply with Premier League and UEFA financial regulations.
As part of further cost-saving measures, Manchester United will:
- End free staff lunches at Old Trafford, saving over £1 million annually.
- Reduce staff bonuses.
- Relocate some employees from Old Trafford to the Carrington training ground.
- Require all senior leadership to be based in Manchester, including new Chief Business Officer Marc Armstrong.
The club has also confirmed that its charitable contributions will now be focused on the Manchester United Foundation and the Manchester United Disabled Supporters’ Association, with the latter continuing to receive an annual £40,000 donation. Talks are ongoing regarding the future level of support for the Manchester United Foundation, but significant contributions are expected to continue.
Berrada reiterated the club’s priorities, stating:
“Our two main goals are achieving success on the pitch and improving facilities for our fans. However, we cannot invest in these areas while continuously operating at a loss. By the end of this restructuring, we will have a leaner, more agile, and financially stable football club, better positioned to compete and grow within Premier League and UEFA regulations.”
Financial Burden and Ownership Scrutiny
United’s financial struggles have also reignited criticism of the Glazer family’s ownership. Since their leveraged buyout of the club in 2005, the Glazers have taken over £1 billion out of the club, including:
- Borrowing £600 million to acquire the club, with United paying £834 million in interest over 19 years. Despite these payments, the club’s debt has risen to £731 million.
- Spending £391 million on transfer payments.
- Taking £177 million in dividends over the past decade.
- Selling 25% of the club to INEOS for approximately £1 billion.
With growing frustration among fans and financial instability persisting, the club’s leadership faces significant pressure to balance financial sustainability with maintaining competitiveness on the pitch.
