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February 25, 2025 | 05:19 pm
TEMPO.CO, Jakarta - Manchester United has announced plans to reduce its workforce by approximately 150 to 200 employees, alongside cuts to bonuses and the elimination of free lunches for staff.
These efficiency measures were disclosed by the English Premier League football club on Wednesday, February 24, 2025, as part of a major restructuring effort aimed at restoring profitability after five consecutive years of losses. This round of staff reductions follows 250 layoffs conducted in the previous year.
The restructuring initiative began following British billionaire Jim Ratcliffe's acquisition of a 25 percent stake in the club last year. His efforts are focused on reviving Manchester United's on-field success.
However, last September, the 20-time English Premier League champions reported a fifth consecutive annual loss, largely attributed to their absence from the lucrative Champions League competition.
"We have lost money for the past five consecutive years. This cannot continue," stated Manchester United CEO Omar Berrada.
As part of the restructuring plan, the club will discontinue the provision of free lunches for staff at the Old Trafford canteen. This move is projected to save over 1 million pounds (Rp20 billion) annually, according to Reuters' findings. Some staff members will be relocated from Old Trafford to the new training facilities in Carrington, near Manchester, and the entire club leadership will be based in Manchester.
Furthermore, executive bonuses will be paid at a reduced rate this year before transitioning to a new scheme more closely aligned with the club's football and financial performance. The club will also concentrate its charitable contributions exclusively on the Manchester United Foundation and the Manchester United Disabled Supporters Association, ceasing donations to other charitable organizations. Discussions are currently underway with the Manchester United Foundation regarding contribution levels.
According to the official website of the Manchester United Foundation, the organization raised 608,000 pounds from season ticket holders and online donations in 2023/24. The foundation delivers educational and community service programs aimed at young people.
Berrada emphasized that this process seeks to establish a financially sustainable football club. "At the end of this process, we will have a more lean, agile, and financially sustainable football club," he said.
However, on-field performance has not shown significant improvement. Last season, Manchester United finished eighth in the Premier League standings, and they are currently in 15th place, indicating substantial challenges both on and off the field.
Last week, Manchester United reported an adjusted net loss of 6.2 million pounds (Rp1.2 trillion) for the second quarter, highlighting the club's ongoing financial difficulties. The club's shares, which have declined by approximately 16 percent throughout the year, experienced a slight increase of 0.5 percent on Monday.
The US$1.25 billion (Rp20 trillion) investment by Ratcliffe a year ago was initially met with enthusiasm by fans. However, this enthusiasm has diminished over the past 12 months due to the team's poor on-field performance. With these restructuring measures, the club aims to improve its financial standing and sporting results in the long term.
REUTERS
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