Importance Score: 65 / 100 🔴
Manchester United has reportedly communicated to approximately 200 employees that their positions are at risk as the football club executes further cost-cutting measures. High-ranking personnel and executives are also under threat, bringing the total number of job losses to 450 since Sir Jim Ratcliffe and INEOS assumed control of the club’s operations.
The sweeping redundancies have sparked concern among staff members, who fear that the cuts could severely impact the club’s core structure, despite warnings from the British tycoon that the club could face insolvency without such drastic actions.
The Scope of Job Losses
The Daily Mail has revealed that over the past 48 hours, an employee with decades of service at Old Trafford, widely respected throughout the football industry, has been notified of potential redundancy. Additionally, a recently promoted senior leader has been informed of the same.
The Impacts of the Reduced Workforce
These employees, along with others, remain under provisional consideration for INEOS’ redundancy program and are subject to review by staff representatives.
As of June 30, 2024, United had 1,140 employees, meaning that 450 redundancies account for approximately 39% of the club’s workforce. The club reported a loss of £27.7 million in its second-quarter financial results, with over £300 million lost over the past three years.
Changes in Scouting and Recruitment
Steve Brown, the Director of Scouting, is departing the club after nine years of service, following Ratcliffe’s critique of the club’s recent recruitment strategies. The businessman has asserted that United can operate with greater efficiency.
The Red Devils have accumulated a net expenditure of £1.08 billion since 2015, surpassing any other football club globally, yet have not translated this investment into on-field success. Current efforts to streamline operations include reducing the workforce to save funds.
Despite the cost-cutting measures, United is poised to invest significantly in player acquisitions this summer to bolster Ruben Amorim’s squad, with a reported £62.5 million move for Wolverhampton Wanderers forward Matheus Cunha in the pipeline.
“Manchester United has descended into mediocrity,” Ratcliffe admitted in an interview earlier this season. “It is intended to be one of the world’s premier football clubs. We must make some challenging and unpopular decisions. Avoiding difficult choices will not bring about meaningful change.
“We understand the criticism we receive from the media, but we must address the club’s operational costs. Our objective is to allocate funds towards acquiring top-tier footballers, rather than excessive spending on infrastructure. We cannot sustain a loss-making business model, as United has done in recent years.”
The Necessity of Cost-Cutting
The petrochemicals magnate has been candid about the “tough” decisions required to steer United back to its former greatness.
These cost-cutting measures are designed to ensure the club’s financial stability and pave the way for reinvestment in key areas, including player recruitment and squad strengthening.