Manchester United has announced plans to cut around 150-200 jobs as part of a ‘transformational plan’.
The plan, titled “Transformation Plan to Strengthen Financial Sustainability and Modernise its Operating Structure”, was unveiled on 24 February. It includes changes to the club’s corporate structure and additional measures.
Manchester United stated that these measures, including the aforementioned job reductions, are designed to help return the club to profitability for the first time since 2019.
Omar Berrada, CEO of Manchester United, said: “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.”
As noted by Berrada, the Premier League club made 250 people redundant last year, with the CEO asserting in a financial report following these losses that its “cost and headcount reductions remain on track”.
Despite the Red Devils consistently generating one of the highest revenues in global football, Berrada says it has “lost money for the past five consecutive years”, adding that “this cannot continue”.
“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,” he stated.
“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.”
Every saving measure helps
Cost-cutting has been a defining theme at Manchester United since Sir Jim Ratcliffe purchased a minority stake in late 2023. From cutting 500 jobs to cancelling staff Christmas parties, the club’s cost-saving measures have often been met with criticism and even mockery from fans and the media.
Though not officially mentioned in the latest announcement, reports suggest that United has also stopped offering free staff lunches at Old Trafford – a move expected to save £1m a year.
While Ratcliffe insists that every saving helps, the club still faces significant financial challenges. In its latest financial report, it revealed a pre-tax loss of £37.6m over three months, along with £18.8m in-debt interest payments over six months. Since the Glazers’ leveraged buyout, total interest costs have now surpassed £1bn.
Beyond cost-cutting, boosting revenue is also a priority. Earlier this month, the club appointed Marc Armstrong as Chief Business Officer to explore new ways to increase income.
However, even this seemingly positive move reminded supporters of the abrupt departure of Sporting Director Dan Ashworth, who left just five months after a lengthy and costly recruitment process to bring him in from Newcastle United.
Despite the challenges, there have been some positives under Ratcliffe’s influence. The government recently announced its support for the ‘Old Trafford Regeneration’ project, which includes plans for a new or redeveloped stadium and wider investment in the surrounding area that could be valued at almost £2bn.
