55 members of staff at Arsenal are set to lose their jobs as the financial impact of COVID-19 shows its teeth.
The Premier League club say the proposed changes are about "ensuring we have the resources to return to competing effectively at the top of the game here and in Europe".
Arsenal secured a 25th consecutive season of European football last weekend by beating Chelsea 2-1 in the FA Cup final at Wembley.
An 8th place finish in the Premier League meant they missed out on lucrative Champions League football for a fourth season in a row.
Back in April, the first-team squad, head coach Mikel Arteta and his backroom team all agreed to 12.5 per cent pay cuts.
In a letter signed by Head of Football Raúl Sanllehi, and Managing Director Vinai Venkatesham, the club say that their "main sources of income have all reduced significantly".
They add, "Revenue from broadcasters, matchday and commercial activities have all been hit severely and these impacts will continue into at least the forthcoming 2020/21 season.
"The pandemic represents one of the most challenging periods in our 134-year history and we have responded promptly by implementing wide-ranging measures to reduce our costs.
"Our players, senior football staff and executive team have volunteered pay cuts, we have stopped pretty much all of our capital spending, and our discretionary operating expenditure has been strictly controlled."
Despite being propped up financial by the Kroenke family, Arsenal say they must "reduce our costs further to ensure we are operating in a sustainable and responsible way, and to enable us to continue to invest in the team".
Their letter concludes, "We do not make these proposals lightly and have looked at every aspect of the club and our expenditure before reaching this point. We are now entering the required 30-day consultation period on these proposals.
"We know this is upsetting and difficult for our dedicated staff and our focus is on managing this as sensitively as possible.
"These proposed changes are ultimately about ensuring we take this great football club forward, creating the right organisation for a post-Covid world, and ensuring we have the resources to return to competing effectively at the top of the game here and in Europe."
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