Manchester United has confirmed plans to cut between 150 and 200 more jobs as part of a restructuring effort aimed at enhancing financial stability and streamlining operations. This follows an earlier round of layoffs last summer, which saw approximately 250 positions removed. With these latest reductions, the club’s workforce – once around 1,000 employees – will be reduced by nearly half.
Despite recording strong revenues, including a record-breaking £662 million for the 2023/24 season, the club has been operating at a financial loss for five consecutive years. The latest measures are part of an effort to curb financial instability, though some critics argue that poor player investments have contributed more to financial strain than the operational staff reductions.
Cost-cutting measures and financial struggles
In recent months, staff have seen numerous workplace benefits withdrawn as part of cost-saving initiatives. One notable change includes the removal of the staff canteen at Old Trafford, which has been replaced by free fruit in office spaces, as reported by The Guardian.
Manchester United has also spent significant sums on managerial changes, including terminating Erik ten Hag’s tenure shortly after renewing his contract, securing Ruben Amorim from Sporting CP, and hiring and subsequently parting ways with Dan Ashworth.
A longstanding financial burden remains the debt inherited from the Glazer family’s leveraged buyout in 2005. Once a debt-free club since the 1930s, Manchester United has since lost over £1 billion in debt-related expenses.
Club leadership’s justification
Chief Executive Omar Berrada emphasized the necessity of these measures in a club statement, asserting that the financial restructuring is crucial for future success. He acknowledged the difficult impact on affected employees but underscored the importance of achieving financial sustainability.
“We have a responsibility to position Manchester United for success across our men’s, women’s, and academy teams,” Berrada stated. “Unfortunately, that means implementing further staff reductions, a decision we deeply regret. However, these steps are essential for stabilizing our finances.”
Berrada further highlighted that persistent financial losses are unsustainable, hindering investments in both player performance and infrastructure improvements. He stressed that once the restructuring is complete, the club will be more efficient and better equipped to invest in future success while ensuring compliance with UEFA and Premier League financial regulations.
