Manchester United have announced a “transformation plan” that could result in 200 redundancies.
The club informed the New York Stock Exchange of its intentions this morning with a view to returning it to profitability after five consecutive years of losses.
The news will not go down well with supporters frustrated with progress on the pitch – United are 15th in the Premier League – and a series of disappointing developments off it.
Nearly 250 employees were made redundant last year while reports this morning claimed Sir Jim Ratcliffe’s cost-cutting measures had even gone as far as closing the staff canteen.
Today’s statement read: “Manchester United announces that it will 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.”
We have a responsibility – Berrada
United CEO Omar Berrada 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.
“We have lost money for the past five consecutive years. 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.
“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.”
Expensive mistakes
United last week revealed they shelled out £4.1million in hiring and firing Dan Ashworth with the club’s former sporting director in post for just 159 days.
They also had to pay Erik ten Hag and his coaching staff £10.4m in compensation when the Dutchman was sacked in October, just three-and-a-half months after signing a one-year contract extension.
Ruben Amorim was appointed in Ten Hag’s place but results have not improved with United winning just four of the Portuguese’s 15 league games in charge.
