Manchester United are planning to make over 100 staff members redundant in another mass culling, which club executives have described as “necessary,” according to reports.
Since Sir Jim Ratcliffe’s INEOS took control of the club’s sporting operations following a £1.2bn investment in December 2023, cost-cutting measures have been widespread. These have included everything from eliminating free cereal bars for stewards to cutting back on charity donations, alongside the redundancy of 250 non-playing staff members last summer.
United have acknowledged that they risk breaching the Premier League’s strict financial regulations unless they raise more funds, prompting this latest round of drastic cost-saving measures, as reported by The Athletic.
The 100-plus employees facing redundancy were not informed before the report about their impending dismissal was released. These layoffs will affect various departments across the club, with a significant impact expected on staff within the sporting side.
Ratcliffe has faced heavy criticism for his ongoing cost-cutting initiatives at Manchester United. The previous round of layoffs, referred to as the “employee redundancy program,” saved the club between £40-45 million, though it cost around £10 million to implement. The Athletic suggests that these new restructuring measures partly stem from the men’s team’s underperformance on the pitch.
United’s failure to qualify for this season’s Champions League resulted in missing out on the substantial financial rewards that come with participation. While they earned around £18.9 million from the Europa League, clubs in the Champions League group stage earned between £60-80 million. With the team currently in 13th place, qualification for next season’s Champions League now hinges on winning the Europa League.
Additionally, United face a potential reduction of around £8 million per year in their lucrative sponsorship deal with kit supplier Adidas for every season they miss out on the Champions League.
Ratcliffe, known for his aggressive cost-cutting strategies, is also facing legal action from New Zealand Rugby over missed payment deadlines, citing “the deindustrialisation of Europe” as the reason for the delay.
