Portsmouth's administrators have revealed there is a 'serious risk' the club could run out of cash inside the next two months.
Administrators PKF Accountants & business advisers were appointed by the High Court last Friday after the club ran into difficulties for the second time in three seasons.
Trevor Birch, partner at PKF and joint administrator of Portsmouth, has confirmed that a raft of difficult decisions have been taken, adding that 'certain' employees have been asked to defer wages.
Portsmouth chief executive David Lampitt has left with immediate effect as part of the cost-cutting measures, telling Sky Sports News: "I respect the decision of Trevor and the administrators and wish them all the best during a difficult time for the club.
"The priority is for the football club to survive and be sold to a new buyer - that is more important than anything else to ensure that this great city and the extraordinary fans have a club to support for generations to come.
"I would also like to say a huge thank you to all my staff who have shown an incredible dedication and resilience through very difficult circumstances."
The club's administrators have revealed the club have a 'Premier League cost base' while attempting to operate on a Championship income, something they say is not sustainable.
"We have had no choice but to take the difficult decision to make a number of redundancies across all levels and departments within Portsmouth Football Club," read a statement on the club's official website.
"Additionally, we are asking certain employees to defer wages on an ongoing basis and are asking several members of staff to move from a full-time to a part-time role.
"These measures are painful for everyone involved with the club, but they are essential for Portsmouth's survival, which is our main objective.
"They are in no way a reflection of the performance of the club's hard-working staff, who have remained loyal and supportive throughout this difficult time.
"Our initial analysis of the club's financial position has revealed that the situation is more serious than many people had expected.
"We have been brought in to try to rescue a business with significant financial problems. To put it bluntly, Portsmouth Football Club has a Premier League cost base but only Championship income. This is not a sustainable situation and one that needs to be addressed urgently if the club is to continue to exist.
"As things stand, there is a serious risk that the club could run out of cash within the next couple of months. I recognise that this is not the news that anyone wants to hear but burying our heads in the sand will not help anyone.
"Today's redundancies will make a difference to the club's financial position but there are sure to be further challenges ahead of us.
"Portsmouth's survival depends on us being able to find a buyer for the club before the money runs out.
"This is a great club with a proud history. We will continue to do all we can to secure a long-term future for Portsmouth Football Club. I hope that with the support of the staff, players, supporters and the wider community we can achieve this aim.
"Portsmouth needs the support of as many people as possible over the next few weeks and months. There are six home games coming up in the next five weeks so let's make every single one a sell-out - starting with Leeds on Saturday.
"With this in mind, we have already started speaking to the supporters' groups and are meeting with fans tonight."