Manchester United’s Cost-Cutting Continues: Staff Canteen Closure, Job Cuts, and Financial Pressures

Manchester United is set to implement further cost-cutting measures as Sir Jim Ratcliffe pushes to streamline operations and reduce financial losses. In a significant move, the club will close its staff canteen, replacing free hot meals with a single piece of fruit for employees. The decision comes as part of a wider financial overhaul aimed at mitigating losses exceeding £300 million over the past three years.

The latest developments at Old Trafford indicate that further redundancies are expected, following a prior round of layoffs in the summer of 2024. Reports suggest that an additional 150 to 200 staff positions may be cut, adding to the 250 redundancies already made last year. Before these cuts, Manchester United reported an average full-time employee count of 1,140 for the 2023/24 season.

Rising Headcount, Declining Performance

As highlighted in Mark Thompson’s recent LinkedIn post, United saw one of the highest growth rates in full-time employees over the past decade among Premier League clubs—second only to Leicester City, which experienced a significant operational expansion after winning the Premier League. United’s staffing levels surged 150% between 2013 and 2023, reaching 966 employees before rising further last year.

Despite this workforce expansion, United’s performance on the pitch has been disappointing, adding to financial pressures. Head Coach Ruben Amorim has admitted that the first-team squad must take responsibility, as player wages remain the most significant expense in the club’s operations.

Adding to their financial woes, United is at risk of losing £20 million in Premier League prize money this season. Their drop to 15th in the table—after finishing eighth last year—has raised alarm bells internally. Given that each league position is worth approximately £3 million in broadcast revenue distribution, this decline could have major implications for the club’s finances.

Transfer Spending Under Scrutiny

At the same time, United’s January transfer activity has drawn attention, with over £12 million in additional payments made for new signings. The club secured the £25 million transfer of Patrick Dorgu from Italian side Lecce, alongside Ayden Heaven from Arsenal, while also committing to a long-term contract extension for Amad Diallo.

These expenses highlight Ratcliffe’s and his team’s ongoing challenge: balancing necessary investments in the squad while aggressively cutting costs elsewhere.

The Bigger Picture

United’s cost-cutting measures—including staff reductions, operational changes, and perks eliminations—are part of a broader effort to restore financial stability. However, with rising discontent among employees and concerns over competitive performance, the club’s leadership faces increasing scrutiny over its long-term vision.

As the latest staff meeting looms, the football industry will be watching closely to see how these measures impact both the club’s financial recovery and its future on the pitch.