Premier League team Manchester United is to cut up to 200 jobs, including reducing its London office, in an attempt to return to profitability after five years of losses.
The club’s new plan comes a few days after billionaire Jim Ratcliffe’s anniversary as part-owner, and following 250 job cuts last year, from a high of over 1,150 staff. After continuing to trim perks for employees, it will also end free lunches at Old Trafford, saving over £1 million a year.
Read More: Manchester United Turns Into a Costly Venture for Jim Ratcliffe
“We have lost money for the past five consecutive years,” said Omar Berrada, Manchester United’s CEO. “This cannot continue. Our two main priorities as a club are delivering success on the pitch for our fans and improving our facilities. We cannot invest in these objectives if we are continuously losing money.”
Ratcliffe has spent about $1.5 billion to acquire almost a third of Manchester United. Over his first year as a stakeholder, the club has performed worse than any time since the 1980s, lost more than £100 million ($126 million), and has a looming debt cliff.
Manchester United will now move staff from its stadium at Old Trafford to the training center at Carrington, taking advantage of soon-to-be modernized facilities there.
There will be a reduced presence in its London office, which previously housed a number of senior executives. All the club’s leadership will be Manchester-based, including Marc Armstrong who joins Monday from Paris Saint-Germain as chief business officer.
The club also said it would be paying bonuses at a reduced rate this year, and transitioning to a revised scheme based more firmly on the club’s football and financial performance.
Manchester United is having one of its poorest seasons ever on the pitch, standing in 15th place in the Premier League.
