Manchester United announced on Monday that it anticipates making up to 200 new job cuts as part of a "transformation plan" aimed at enhancing the club's financial sustainability.
Last year, approximately 250 employees were made redundant during the initial phase of cost-cutting measures following the acquisition of a stake in the club by INEOS chairman Jim Ratcliffe.
The club has also raised ticket prices, despite facing backlash from supporters. In a statement, Manchester United indicated that the plan is designed to restore profitability after experiencing five consecutive years of losses since 2019.
The statement emphasized that the initiative aims to establish a more robust financial foundation, enabling the club to invest in both men's and women's football success as well as improved infrastructure.
As part of these measures, the club expects that approximately 150 to 200 jobs may be made redundant, pending a consultation process with employees. This would be in addition to the 250 roles eliminated last year.
United's CEO, Omar Berrada, remarked that the extensive measures are intended to "transform and renew" the club. He expressed regret over the potential redundancies, acknowledging the difficult decisions necessary to achieve financial stability.
Berrada stated, "We have lost money for the past five consecutive years. This cannot continue." He reiterated that the club's primary objectives are to achieve success on the pitch and enhance facilities, which cannot be realized while incurring ongoing financial losses.
Recent accounts revealed that the club incurred a total expense of £14.5 million ($17.5 million) to terminate the contracts of manager Erik ten Hag, sporting director Dan Ashworth, and other football staff.
Ruben Amorim was appointed as the new manager in November following Ten Hag's dismissal, but he has struggled to improve the team's performance, currently placing 15th in the Premier League after a recent draw with Everton.
In contrast, Manchester United's women's team has seen greater success this season, currently ranking second in the Women's Super League table.
Despite financial challenges, Manchester United ranked fourth in Deloitte’s annual Football Money League, which lists the world's richest clubs, as published last month.
0 Comments