Town will part company with 15% of their non-playing staff as the financial problems at the club continue to bite. Town chairman David Sheepshanks described the move as "regrettable" and "sad" and paid tribute to the club's off-field employees.

Chief executive Derek Bowden says that as well as the job cuts the club's website will also be the subject of change: "Since May 2002 Ipswich Town have been very clear about the severe financial effects of relegation. Despite a large number of cost cutting initiatives having been introduced since relegation the team's continuing inconsistent league form and position in the table have had a detrimental effect on gate, retail and general commercial income.

"This situation now necessitates further cuts and these will unfortunately include job losses across the off field areas of the club. Consultation with those affected will take place from today.

"The immediate cuts involve a 15% reduction in non-playing staff levels, fewer than 20 people. Of course we have considered all other means available to avoid job losses and have taken a number of steps to cut costs so as not to affect staff numbers.

"For example we have decided to switch to a more cost efficient website provider Premium TV. PTV is now the established provider to the majority of Football League Clubs and several in the Premiership, the best example of which is Newcastle United. In addition to these there will be a number of other non-staff related cost reduction actions to be announced in the coming days."

Chairman David Sheepshanks commented: "It is very sad to have to part with valued members of staff. The off-field business of the club has for the most part been a major success story and the staff have in many ways been unsung heroes of the past few years.

"However, we all know that the success or otherwise of a football club is dictated by what happens on the field of play and we are now facing the consequences of recent disappointments in that area, that is until the last few weeks.

"These budgetary actions that are now being undertaken are regrettable but absolutely necessary. While we still harbour ambitions of challenging for a play- off position we cannot gamble the next six months costs on an uncertain outcome.

"The financial realities are that we have to operate within a Division One income and the Premier League parachute money is insufficient to make up the difference between our current costs and income.

"On the playing side we want to support Joe Royle as much as possible by retaining a team that is capable of promotion but by the same token our hands are tied by financial realities. The transfer window is now open and I can only repeat what I have said previously that we cannot rule out the possibility of player sales, as clearly the most significant cost base for the club centres around our playing staff."

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