Manchester United has announced plans to cut approximately 200 jobs as part of a comprehensive overhaul aimed at returning to profitability.
This move comes after the club reported its fifth consecutive annual loss in September.
The job cuts are in addition to the 250 positions eliminated last year, as the club seeks to streamline its operations and reduce costs.
British billionaire Jim Ratcliffe, who acquired a 25% stake in the club last year, is driving this restructuring effort and leading soccer operations.
Manchester United CEO Statement
According to CEO Omar Berrada, the club’s financial situation is unsustainable, with five consecutive years of losses. “We have lost money for the past five consecutive years. ”
This cannot continue,” Berrada stated. To address this, the club is implementing various cost-cutting measures, including ending free lunches for staff in the Old Trafford canteen, which is expected to save over £1 million annually.
As part of the restructuring plan, some staff will be relocated from Old Trafford to the club’s new training facility at Carrington near Manchester.
Additionally, executive bonuses will be paid at a reduced rate this year and will transition to a revised scheme based on the club’s football and financial performance.
The club will also focus its charitable donations on the Manchester United Foundation and Manchester United Disabled Supporters’ Association.
CEO Omar Berrada emphasized that the ultimate goal of this restructuring process is to create a more lean, agile, and financially sustainable football club.
“At the end of this process, we will have a more lean, agile and financially sustainable football club,” Berrada said.
The club’s financial struggles have been evident, with an adjusted net loss of $7.83 million reported in the second quarter.
The shares have lost around 16% of their value so far this year, although they saw a slight increase of 0.5% following the announcement.
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