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Manchester United has decided to make significant changes in order to achieve profitability by announcing a plan that will lead to up to 200 job redundancies. This decision comes after 250 members of staff were made redundant last year as part of cost-cutting measures initiated by co-owner Sir Jim Ratcliffe. During a meeting with the employees, United’s chief executive, Omar Berrada, shared that this fresh round of redundancies is a part of a larger “transformation plan” aimed at returning the club to profitability following five years of consecutive losses since 2019.
The club stated that approximately 150-200 jobs might be at risk, pending a consultation process with employees, which is expected to last between three to four months. As of June 30, 2024, Manchester United had 1,140 employees, meaning that 450 redundancies would account for 39% of the workforce. The financial results revealed a loss of £27.7m in the second quarter, adding up to over £300m in losses over the past three years. The Red Devils are currently on track for their lowest Premier League finish, standing at 15th in the table after a recent draw with Everton.
In a move to improve financial sustainability and operational efficiency, Manchester United is taking additional measures. According to Berrada, these hard choices are necessary to stabilize the club’s financial foundation and enable investments in both men’s and women’s football success as well as infrastructure improvements. The newly appointed chief business officer, Marc Armstrong, underscores the club’s commitment to realigning its operations, including relocating staff to the Carrington training base and maintaining a smaller presence in London. Additionally, the end of free lunches and other cost-saving measures are expected to contribute to steering the club towards financial stability.
Since Ratcliffe’s involvement with Manchester United and subsequent cost-cutting decisions, the club has been navigating through significant changes. Tough choices, such as increasing matchday ticket prices and contemplating stadium redevelopment, are part of the strategy to secure the club’s long-term financial viability. With losses reaching over £370m in the past five years, there is a pressing need to realign the club’s financial standing. As United faces the possibility of finishing in the bottom half of the league, the path to Champions League qualification through the Europa League victory remains crucial to the club’s financial future
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