Mired in its worst season in half a century, English Premier League club Manchester United revealed plans to lay off between 150 and 200 employees, in addition to the 250 employees who were let go last year.
United CEO Omar Berrada said the cuts were necessary to return the club to a “stable financial footing,” in a release on the news. He cited five straight years of losing money and the inability to invest in the team and new facilities if the club continues on the current path. Another factor is the need to stay compliant with UEFA and Premier League regulations on spending.
Man United’s cumulative net loss over the past five years, which included seasons impacted by COVID-19, was £377 million ($470 million based on current exchange rates).
United’s financial results listed 1,127 employees at the end of June, before its 2024 layoffs occurred. Other cost savings implemented after Jim Ratcliffe purchased a 25% United stake in February included the end of a club ambassador contract for Alex Ferguson. The deal had been in place since 2013, when the former manager retired after a historic 27-year run that included 13 English league titles.
Last week, United reported its first-half financial results with an 11% decline in revenue, largely from lower broadcast revenue after playing in the Europa League tournament versus Champions League the prior season. The net loss was $33 million compared to $6.8 million in the year prior.
United’s financial report pointed out the cost of firing manager Erik ten Hag and his staff after the poor start to the 2024-25 season; the exceptional item cost £14.5 million ($18.3 million). Ten Hag was replaced by Ruben Amorim.
Man United currently sits 15th in the 20-team Premier League, 34 points behind leading Liverpool with 12 games left in the season. Last year, United finished in eighth place, its worst showing since the EPL launched in 1992.
