Manchester United have informed staff that almost a quarter of the club's squad will be made redundant and the money saved will be used to improve performances on the pitch, a source told ESPN.
The plans were briefed to United employees at a meeting on Wednesday.
A source told ESPN that the news, delivered by interim chief executive Jean-Claude Blanc, left club staff in shock.
Some staff have already been told they will be leaving, while others will find out if they are affected later this week.
The move, pushed by new INEOS chairman and co-owner Sir Jim Ratcliffe, could lead to the departure of up to 250 of United's 1,100 staff.
A source told ESPN that Ratcliffe hopes to save millions, with the bulk of it going towards improving the first-team squad and facilities.
The decision follows a cost review at the club following Ratcliffe's arrival as co-owner in February.
A source told ESPN that it was “not taken lightly” but there was a feeling that a “significant financial transformation” was needed to revitalise the club's fortunes.
Other cost-cutting measures have already been implemented, including the cancellation of traditional travel and hospitality for staff to attend the FA Cup final.
On Friday, United agreed to pay Newcastle United a substantial fee to allow Dan Ashworth to begin work as their new sporting director.
The deal, worth millions, ended a four-month standoff between the two clubs.
Ratcliffe has faced criticism for his prioritisation of the men's first team, particularly after the decision to move the women's team to temporary buildings at the club's training base in Carrington while improvements are made to the men's facilities.
Erik ten Hag players and staff will use the buildings designated for the women's team while their facilities are being renovated.
The improvements will cost around £50m and are expected to last through the 2024-25 season.
United declined to comment when contacted by ESPN.
