Manchester United to Cut Jobs, Bonuses to Restore Profits

General view of the crest of Manchester United inside the stadium before a match. REUTERS/Phil Noble/File Photo

Manchester United will cut around 150-200 more jobs as part of an overhaul to return to profitability after five years of losses, the Premier League soccer club said on Monday.
The plan is in addition to 250 jobs removed last year, the club said.
The club has been restructuring and cutting costs since British billionaire Jim Ratcliffe took a 25% stake last year and took charge of soccer operations to try to revive its fortunes on the pitch.
In September, the 20-time English champions reported its fifth straight annual loss as it missed out on the lucrative European Champions League competition.
"We have lost money for the past five consecutive years. This cannot continue," CEO Omar Berrada said in a statement.
The restructuring plan includes an end to free lunches for staff in the Old Trafford canteen to save more than 1 million pounds ($1.26 million) a year, a source close to the club told Reuters.
Some staff will move from Old Trafford to the new training facility at Carrington near Manchester and all the club's leadership will be based in Manchester, the source said.
Executive bonuses will be paid at a reduced rate this year and then transition to a revised scheme based more firmly on the club's football and financial performance, the source added.
The club's charitable donations will be focused on Manchester United Foundation and Manchester United Disabled Supporters' Association, the source said, and it is in talks with MUF about the level of its contribution.
The club will stop donations to other charitable causes, the source also said.
The foundation, which provides educational and community outreach programs aimed at young people, raised 608,000 pounds from season ticket holders and online donations in 2023/24, according to its website.
"At the end of this process, we will have a more lean, agile and financially sustainable football club," Berrada said.
Manchester United finished eighth in the league last season. The team currently sits in 15th place in the Premier League.
Last week, Manchester United admitted challenges after reporting an adjusted net loss of 6.2 million pounds ($7.83 million) in the second quarter.
The shares, which have lost about 16% so far this year, were up 0.5% on Monday.
Ratcliffe's purchase of a $1.25 billion stake a year ago was met with excitement by fans but that enthusiasm has ebbed away over the past 12 months after a poor showing on the field.