Man Utd: Club statement confirms up to 200 more redundancies possible and free lunches set to end for Old Trafford staff
Manchester United have confirmed up to 200 more jobs may be made redundant at the club as cuts continue; free lunches for staff at Old Trafford set to end; CEO Omar Berrada says: "We have lost money for the past five consecutive years. This cannot continue"
Tuesday 25 February 2025 13:05, UK
Manchester United could make up to a further 200 workers redundant, as they step up their restructuring of the corporate side of the club in a bid to save money.
After 250 roles were removed last year, more big cuts are on the way, as the hierarchy, led by part-owner Sir Jim Ratcliffe, look to return the club to profitability. CEO Omar Berrada said: "We have lost money for the past five consecutive years. This cannot continue."
A club statement read: "Manchester United is to 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."
Berrada added: "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."
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Last month, in a response to a letter from fan groups about increasing ticket prices at Old Trafford, United responded by saying: "We are currently making a significant loss each year - totalling over £300m in the past three years.
"This is not sustainable and if we do not act now we are in danger of failing to comply with PSR/FFP requirements in future years and significantly impacting our ability to compete on the pitch."
Last week, United's quarterly accounts showed a loss of £27.7m for the period, with operating profit tumbling from £27.5m to £3m.
Those latest results showed the decision to extend Erik ten Hag's contract as head coach in the summer and then fire him and his backroom staff nine games into this season set United back around £10.4m.
The accounts also showed it cost United in excess of £4.1m in compensation and then severance to bring sporting director Dan Ashworth to the club and then sack him.
Free lunches for staff axed
As well as the redundancies, the 'transformation plan' will see the end of free staff lunches at Old Trafford - saving over £1m per year, according to the club.
Bonuses for staff will also be reduced this year, with some staff moving from Old Trafford to the Carrington training ground and all of the club's leadership now to be Manchester-based, including new chief business officer Marc Armstrong, who began work on Monday.
United have confirmed the club's charitable donations will be focused on the Manchester United Foundation and Manchester United Disabled Supporters' Association, and their annual donation of £40,000 to the latter will remain unchanged. They are in talks with the Manchester United Foundation about their future levels of contribution, though it is indicated that significant support will continue.
Berrada added: "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."
'The people losing jobs are not responsible for Man Utd problems'
Sky Sports News chief reporter Kaveh Solhekol:
"People are losing jobs. A lot of them losing their jobs are not the ones responsible for the fact Manchester United have lost something like £300m over the last three years.
"When you look at why United are struggling financially, those people are not the ones to blame.
"The problem has been the vast sums of money that have been spent on the transfer market, players who have not delivered. Also the fact the executives at United have made decisions that have cost the club a lot of money, like Erik ten Hag's new contract and having to be paid off.
"When you talk United and finances, you have to talk about their ownership. Being owned by the Glazer family has cost them well over £1bn over the last 19 years.
"When they bought the club, they borrowed £600m and loaded it on to the club. The club have paid £834m in interest on that debt, 19 years later that debt has gone up to £731m. This is a club who were debt-free when the Glazers bought United.
"They also spent £391m in transfer payments. Total debt is £1.1bn. In the past 10 years the Glazers family have taken dividends of £177m and just over a year ago they sold 25 per cent of the club for around £1bn to INEOS."
'Man Utd becoming married to a cycle of misery and failure'
Sky Sports News' senior reporter Melissa Reddy:
"You cannot be a healthy, successful football club without creating the conditions for people to buy into your idea and them wanting to embark on the journey together. You certainly can't if there is animosity, apprehension, fear, and an absence of goodwill.
"If there is no bond with the supporters, no sense of belonging or appreciation for staff, and a lack of understanding that what happens off the pitch will colour what happens on it, you will be married to a cycle of misery and failure.
"No-one would argue against Manchester United needing to make more financially responsible decisions, and their workforce was severely bloated in comparison to rivals. The cold way of implementing their 'transformation plan', however, is eroding togetherness, leading to a situation with 'morale at its lowest', which as Ruben Amorim admitted 'affects the environment'. A loss of love, of pride, of experience.
"The £66 flat ticket rate for members, doing away with concessions, and the threat of price hikes will also see the loss of loyal fans that have still supported a team delivering a season of record lows.
"It has been players, past and present, that have shown a caring touch and have tried to go out of their way, even financially, to cure some of the cost-cutting decisions.
"You cannot be a healthy, successful football club if you continue to mask the fact that the greatest problems have been the ownership of the Glazers, the interest cost of their leveraged buyout - over £1bn - plus the ridiculously poor recruitment and general football decisions under their watch, which have continued thus far under INEOS."
