Manchester United have informed staff that nearly a quarter of the club's workforce will be made redundant with the money saved set to be used to improve performances on the pitch, a source has told ESPN.

United employees were told of the plans in a meeting on Wednesday.

A source has told ESPN that the news, delivered by interim CEO Jean-Claude Blanc, has left club staff shocked.

Some staff have already been told they are leaving while others are set to discover whether they are affected later this week.

The move, instigated by new INEOS chairman and co-owner Sir Jim Ratcliffe, could see as many as 250 of United's 1,100 staff depart.

A source has told ESPN that Ratcliffe hopes to make savings running into the millions, with the bulk used to improve the first-team squad and their facilities.

The decision has been made following a cost review at the club following the arrival of Ratcliffe as co-owner in February.

A source has told ESPN that it was "not taken lightly" but there is a feeling that "significant financial transformation" is needed to revitalise the club's fortunes.

A number of other cost-cutting measures have already been implemented including cancelling the 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 agreement, which was worth millions, ended a four-month stand-off between the two clubs.

Ratcliffe has faced criticism for his prioritisation of the men's first team, particularly following the decision to relocate the women's team into temporary buildings at the club's Carrington training base while improvements are made to the men's facilities.

Erik ten Hag's players and staff will use buildings designated for the women's team while their facilities are being revamped.

The improvements will cost around 50m with work set to last for the duration of the 2024-25 season.

United declined to comment when approached by ESPN.