Manchester United is set to cut 250 jobs as part of a cost-reduction initiative and the elimination of “non-essential” activities. This decision follows a comprehensive review of the club’s operations led by United director Sir Dave Brailsford since Ineos’ co-ownership was confirmed in December.
Sir Jim Ratcliffe had previously expressed his desire for staff to return to working from the club premises. However, club sources now indicate that a significant financial transformation is necessary to address the rising year-on-year costs.
The review revealed that the current size and structure of the club do not align with its football performance, resulting in an excess of staff. Cost savings have been identified in “non-essential” activities, although it remains unclear what these activities entail. The primary goal is to reduce headcount and employee costs. United currently employs 1,150 full-time staff members.
Interim chief executive Jean-Claude Blanc announced the job cuts at an all-staff meeting attended by around 800 employees. This move is expected to be met with criticism, with some arguing that poor recruitment around the first team has wasted more money than will be saved by reducing the workforce.
Two years ago, former chief executive Richard Arnold was recorded telling fans that United had “burned through” £1 billion on players with little to show for it. Since their last Premier League title in 2012-13, United has spent £1.5 billion on new players, with few proving to be good value.
This summer, the club had a £35 million bid for Everton defender Jarrad Branthwaite rejected and aims to acquire two central defenders and an additional forward. United has also committed £50 million to the development of its Carrington training ground. In the short term, this has led to the women’s team vacating their new facility to accommodate Erik ten Hag’s squad.
Ratcliffe recently told Bloomberg that the past six months since acquiring the club have been “interesting” and acknowledged that it will be a long journey to get United back on track. “It hasn’t kept up with the modern world,” he said. “Some of the practices are not at the level they should be for the biggest football club in the world.”
In the spring, it was announced that a task force, including Greater Manchester Mayor Andy Burnham and former United captain Gary Neville, would explore the financial viability of building a new stadium near the current Old Trafford site.
United officials stress that the decision to cut staff was not taken lightly, and all areas of the club, except for the charitable Manchester United Foundation, will be affected. They considered alternatives, but the impact of those measures would not have been sustainable.
A formal process to propose redundancies will now commence.
