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- Manchester United are set to make 250 of their 1,100 employees redundant
- A wide-scale cost review has suggested they make cuts across the board
Manchester United are set to make almost a quarter of its workforce redundant, Mail Sport understands.
At a series of meetings early on Wednesday, staff were given the bombshell news that up to 250 of the club’s 1,100 employees will be losing their jobs.
Following Sir Jim Ratcliffe and INEOS’s purchase of a quarter stake in the underperforming Premier League giants, which was completed in January, a wide-scale cost review was commissioned.
It subsequently recommended that cuts should be made across all departments as the new investor seeks to return United to its former glories. As a result, a ‘proposed redundancy process’ will take place, with a significant reduction in head count to follow.
It is thought that there are two key factors behind the move. Following INEOS’s arrival, the priority has been placed on the performance of the first team at Old Trafford and the figure expected to be saved by the forthcoming cost-cutting is thought to run into the tens of millions – with that cash to instead be invested in Erik ten Hag’s playing squad.
Compliance with the Premier League’s controversial Profit and Sustainability (PSR) rules is also understood to have played a part.
At 1,112 as of June 30 last year, United had by far the biggest staff of any club in the Premier League. That number is considerably higher than all of their Big Six rivals, with Liverpool having around 1,005 employees, Chelsea 788, Tottenham 719, Arsenal 649 and Manchester City 520, according to each club’s latest figures.
United have previously faced criticism for a perceived bloated structure that blurs decision-making and is stifled by layers of bureaucracy. Workers were told that the review had found a significant transformation was needed, with staffing costs having risen to unacceptable levels.
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The view, officials added, is that the size of the workforce does not reflect where the club is on the pitch, having finished 8th, 31 points behind rivals and champions Manchester City, and having missed out on Champions League football.
While it is understood that the cuts have been carefully considered and that alternatives were considered, the feeling within the powerbase is that United’s staffing operation needs to be leaner and more agile. There is also a desire to be ‘best in class’ with increased accountability among the workforce.
The move is thought to have been rubber-stamped by majority owners the Glazers. Over the coming weeks, those impacted will be notified in what will not be a voluntary process, staff were also informed. A number of activities deemed non-essential will also be stopped while all departments are expected to be hit.
None of the redundancies will impact on the club’s charity arm, the Manchester United Foundation.
A series of disastrous transfer windows has hamstrung United, with Ratcliffe keen to ensure there is minimal wastage as he attempts to return his boyhood club to the top.
As part of an off-field restructure, Dan Ashworth has arrived as sporting director from Newcastle, Omar Berrada has moved from rivals City to become chief executive and Jason Wilcox has been brought in from Southampton as technical director.
Meanwhile, £50m has been spent on a revamp of the club’s training ground, with work ongoing.
Before the arrival of INEOS, some believed the priority at United was placed on generating revenue rather than success on the field and that, as a result, staff numbers grew considerably.
In May, staff were offered early payment of an annual bonus if they chose to resign rather than work from the club’s offices from June 1, than at home.
Manchester United declined to comment.