Manchester United is reportedly planning to make up to 200 employees redundant as part-owner Sir Jim Ratcliffe aims to reduce operational costs and prevent the club from going bust. This move is part of a broader cost-cutting strategy that has already seen around 250 redundancies since Ratcliffe’s partial investment in the club last year.
Ratcliffe, who owns a 28.94% stake in Manchester United through his company INEOS, has been vocal about the need to restore the club to its former glory. Since his investment, the club has posted five consecutive full-year losses, with a net loss of £113 million in the 2023/24 financial year1. The cumulative losses over the past five years amount to £370 million.
The latest round of redundancies is expected to save the club between £40-45 million annually, but it has drawn criticism from fans, media, and former players. Last year’s job cuts, which affected around 250 employees, were already seen as a significant blow to morale at the club. The latest proposals have not yet been formally communicated to staff, but insiders expect the news to be broken in the near future.
Ratcliffe’s cost-cutting measures have included increasing ticket prices, cancelling Sir Alex Ferguson’s ambassadorial contract, and scrapping the staff Christmas party. Despite these efforts, the financial challenges facing the club remain significant1. Ratcliffe has stated that without his financial injection of £241 million, the club would have gone bust last year.
The redundancies are part of a broader strategy to make the club leaner and ensure that funds are available to strengthen the first team. Ratcliffe’s vision includes a major rebuild of the squad under new manager Ruben Amorim, who was appointed in December2. The club is also considering a new state-of-the-art stadium as part of the Trafford regeneration project, which has received government backing.
The decision to make further redundancies has been met with resistance from former players and fans. Teddy Sheringham, who won several major trophies with Manchester United, has criticized Ratcliffe’s approach, arguing that football is not like any other business and that the staff who are being made redundant are essential to the club’s success5.
Despite the controversy, Ratcliffe remains committed to his plan to turn around the club’s fortunes. He believes that the cost-cutting measures are necessary to ensure that Manchester United can compete at the highest level once again. The club’s financial situation has been described as unsustainable, with losses of £300 million over the past three years.
As Manchester United prepares for the next phase of its cost-cutting strategy, the focus will be on ensuring that the club remains competitive both on and off the pitch. Ratcliffe’s vision for the club includes a leaner operation and a stronger first team, with the aim of returning Manchester United to its former glory1.
In conclusion, the planned redundancies at Manchester United highlight the financial challenges facing the club and the difficult decisions that need to be made to ensure its long-term sustainability. Sir Jim Ratcliffe’s cost-cutting measures have drawn criticism, but he remains committed to his vision for the club3. As the club navigates this challenging period, the support of fans and the dedication of staff will be crucial in achieving the desired turnaround.
