Manchester United Football Club recently announced a massive redundancy program that is expected to put around 250 employees at risk of losing their jobs, a figure that is more than a fifth of the club's total workforce. The decision is part of measures taken by the club's new co-owner, Sir Jim Ratcliffe, to cut costs and restructure the club.
At a consultation meeting held on Tuesday, staff from a number of departments were told they could face redundancy. The news has undoubtedly dealt a heavy blow to the club's morale, especially with the new season just around the corner. According to The Telegraph, some employees have expressed their frustration over the situation and are worried about their future.
According to United's latest accounts for the first quarter ending March 31, the club employs 1,144 staff. Once the redundancy program is completed, the number of employees is expected to fall below 900. The change in numbers shows the club's commitment to cost control during the restructuring process.
Manchester United brought in corporate restructuring firm Interpath Advisory in March to conduct a comprehensive review of the club's business, operations and staff costs. Although United declined to comment on the matter, it is widely believed that the club prefers to complete the restructuring in one go to avoid prolonging a painful process for its employees.
Manchester United's charity, the Manchester United Foundation, has not been affected by the redundancy plan. In addition, the club has given employees the opportunity to resign voluntarily and ended home working permits to further the restructuring process.
Manchester United's preseason plans have not been affected despite the pressure to make cuts. Ten Hagar and his players will fly to Los Angeles on Wednesday to begin their pre-season tour of the United States. They will play against strong teams such as Arsenal, Real Betis and Liverpool to get fully prepared for the new season.
Speaking at a recent Fans' Forum meeting, United chief operating officer Colette Roach said the restructuring process was aimed at ensuring "the right people in the right roles for long-term success". He stressed that the club needed to reduce costs to maximize the money invested in success at the soccer level and infrastructure improvements.
Despite the layoff plans that have shaken the club to its core, Manchester United is still actively pursuing its modernization process. Last month, the club launched a £50 million revamp of its Carrington training base, which will last until next season. In the meantime, Ten Hagar and his players will use the United Women's facilities for training.
