Manchester United is undergoing significant changes under the ownership of INEOS, with a focus on cost-cutting measures and restructuring. The club’s interim chief executive, Jean-Claude Blanc, announced plans to cut 250 jobs in an effort to reduce costs at Old Trafford. This move is part of a broader initiative by INEOS, the club’s minority owner, to streamline operations and improve efficiency.
The decision to reduce the workforce comes after a voluntary redundancy package was offered to non-football staff earlier in the year, with few employees opting to take the offer. The job cuts are expected to impact between a quarter and a fifth of the club’s employees, excluding those working for the Manchester United Foundation. INEOS has also implemented other cost-saving measures, such as canceling company credit cards and requiring staff to cover their own expenses for events like the FA Cup final.
INEOS’s approach to cost-cutting and restructuring is not new, as the company has a history of implementing similar measures in its other businesses. The company’s founder, Sir Jim Ratcliffe, is known for his focus on efficiency and profitability, often referred to as “right-sizing” a business to align with its goals. This approach has been evident in previous acquisitions, such as the purchase of BP’s petrochemicals division, where significant restructuring efforts were made to improve financial performance.
At Manchester United, the changes initiated by INEOS have already led to the departure of several senior executives, including the club’s chief executive, football director, and communications chief. New appointments have been made to key positions, signaling a shift in the club’s leadership structure. Despite the initial challenges and uncertainties brought about by these changes, some staff members are optimistic about the club’s future under INEOS’s ownership.
The relationship between INEOS and its employees, as well as trade unions, has been characterized by past disputes and conflicts, particularly at sites like Grangemouth. However, efforts to improve relations and work collaboratively have been made in recent years, with a focus on protecting jobs and fostering a positive working environment. The company’s investment in its UK sites has helped secure thousands of jobs, despite ongoing challenges in the industry.
Manchester United’s financial performance has also been impacted by the Covid-19 pandemic and the club’s debt burden from previous ownership. Losses in recent years have been significant, prompting the need for cost-cutting measures to comply with financial regulations. While the focus on profitability is crucial for the club’s long-term sustainability, INEOS has expressed a commitment to prioritizing footballing success above financial gains.
As Manchester United continues to navigate these changes and challenges, the club’s employees and stakeholders are bracing for further transformations under the ownership of INEOS. The impact of these restructuring efforts on the club’s operations and future remains to be seen, but the overarching goal is to position Manchester United for success in the ever-evolving world of professional football.