Arsenal are set to make 55 redundancies among club staff.
The news was announced this afternoon and the measures are being undertaken in an effort to ensure that the club "have the resources to return to competing effectively at the top of the game here and in Europe" once the coronavirus pandemic eventually comes to an end.
In a joint statement by the club’s head of football Raul Sanllehi and managing director Vinai Venkatesham, the club detailed the impact that Covid-19 has had.
"Our main sources of income have all reduced significantly. 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," it states.
The statement adds: "Our aim has been to protect the jobs and base salaries of our people for as long as we possibly can. Unfortunately, we have now come to the point where we are proposing 55 redundancies.
"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. "
The statement notes that Arsenal's owners, Kroenke, Sports & Entertainment, have recently provided financial support in terms of refinancing their stadium debt.
"These steps have all reduced the impact of the pandemic on the club and have helped us continue to maintain investment in the team. This will continue to be a key priority," it states.
With fans not expected fans back into stadiums for the start of next season, Arsenal believe that the economic projections are grim.
The statement concludes by saying: "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."
Mikel Arteta's side finished eighth in last season's Premier League and won the FA Cup.