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A Somber Meeting at Old Trafford

About half an hour before Manchester United officially revealed its "transformation plan," staff gathered in the Manchester Suite at Old Trafford. Many had an idea of what to expect, given earlier reports about potential job cuts. Omar Berrada, the club’s chief executive, led the short meeting, which lasted no more than 30 minutes. He confirmed that another round of redundancies would be taking place, following the 250 job cuts announced last summer. Roger Bell, the chief financial officer, and Annie Hale, the head of human resources, also spoke briefly. The room remained mostly quiet, with a solemn atmosphere. While Ruben Amorim and his staff were absent, Marc Skinner, the women’s team coach, and his staff were present.

Details and Reactions

The exact number of job losses—between 150 to 200 roles—was not disclosed during the meeting. Instead, it was shared later via email. Many staff members were caught off guard by the tone of the meeting, which focused on overcoming challenges and past successes, even as some of them might not have jobs in the future. The club emphasized transparency by announcing the plan publicly soon after the meeting, sending a push notification to fans through its official app. However, some employees found the pleas for confidentiality during the meeting to be hypocritical, especially since video conferencing links were restricted to prevent leaks.

Cost-Cutting Measures

The “transformation plan” includes several cost-cutting measures, such as ending free hot meals for staff at Old Trafford. These meals will be replaced with fruit bowls, and the canteen will close. At Carrington, the training site, players will still receive complimentary meals, but staff will have limited options. These changes, while seen as minor, have caused frustration among employees, particularly coming on the heels of the club paying £14.5 million for the departures of a former manager and sporting director. Many staff feel that such perks helped balance lower pay compared to other high-profile employers.

Impact on Staff and Finances

The redundancy program, the second in seven months, will have the most significant impact on employees. Some staff were made aware of the potential cuts earlier this month through a company newsletter, which was timed in a way that some might have missed it over the weekend. The financial struggles at Manchester United are partly due to the club’s failure to qualify for the Champions League, which has affected revenue. The club is projecting further financial difficulties if it doesn’t secure European competition spots in the coming years. Additionally, the legacy of the Glazer family’s leveraged buy-out in 2005 continues to weigh heavily on the club’s finances, with significant interest and dividend payments.

Internal Conflicts and Challenges

There has been internal disagreement over the necessity and approach of these cost-cutting measures. Dan Ashworth, the former sporting director, reportedly clashed with minority owner Sir Jim Ratcliffe over redundancies in the football department before his abrupt departure after just five months. The football operations are expected to bear the brunt of the next round of job cuts. Meanwhile, the club’s London office, which predominantly houses non-football staff, will also be scaled back. Despite some bright spots, such as an 18% increase in commercial revenues thanks to a new sponsorship deal with Qualcomm, the overall financial picture remains bleak, with the club facing five years of consecutive losses totaling £373 million.

Looking Ahead

The redundancies are expected to reduce Manchester United’s workforce by up to 450 roles, bringing the total number of employees in line with levels seen over a decade ago. This move is part of an effort to align the club’s staffing levels with those of its rivals, such as Arsenal. While some argue that drastic action is necessary to stabilize the club’s finances, others criticize the approach as overly austere and short-sighted. The club’s on-field performance has also contributed to its financial struggles, with qualification for the Europa League and Champions League hanging precariously in the balance. If these targets are missed, the financial hole and the impact on staff could deepen further.


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