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Swansea City have told employees that they're facing redundancy as the financial cost of Premier League relegation continues to bite.

A letter sent to every member of staff, excluding the playing staff, manager Graham Potter and his coaching staff, informed that the club 'is continuing to see its income reducing' after last year's relegation.

Distributed by the club's hierarchy, the letter encourages those willing to take voluntary redundancy to step forward and asks for suggestions on ways to avoid having to lay-off members of staff.

Part of the letter reads: "Dear Employee,

"I am writing to inform you of the following situation now facing Swansea City Association Football Club and the Swansea Stadium Management Company (the Companies).

"Following Swansea City Association Football Club's relegation from the Premier League in May 2018 the company is continuing to see its income reducing and this will have a significant impact for both Swansea City Association Football Club and Swansea Stadium Management Company.

"After considering all possible options, the Companies have concluded that there is a risk that they will be unable to continue to provide work for all of its employees and that they may therefore have to make redundancies.

"The Companies will continue to explore ways of avoiding compulsory redundancies and minimising the number of employees affected. Both companies will be consulting with representatives of all affected employees in due course.

"Measure which may assist in avoiding compulsory redundancies include offering alternative employment elsewhere within the Group and voluntary redundancy. If you have any suggestions on ways to avoid redundancies, please let me know.

"If you wish to apply for voluntary redundancy please let me know.

"If the Companies are not able to avoid the need for redundancies, they may have to make redundancies across both companies.

"If redundancies are necessary each Company will have to decide which individuals will be selected for redundancy. This would be done on the basis of objective and quantifiable selection criteria that are yet to be established.

"The Companies will carry out a consultation exercise with appropriate representatives of those employees who may be affected.

"The consultation will cover the Companies proposed selection criteria and ways of avoiding or reducing the number of redundancy dismissals and mitigating the consequences of such demands."

In a statement, a spokesman for Swansea City said: “The club can confirm that a comprehensive review of its operations and organisational structure is ongoing. As part of this process all staff have received notice informing them that the review is being undertaken and as a result there is likely to be a reduction in headcount.

“We are hopeful that the offer of an improved voluntary package will limit the impact on staff.

“It has been a difficult decision for the club to take, but these actions are necessary as part of the ongoing attempt to reduce the cost base in line with the significant reduction in revenue as a result of relegation from the Premier League.”

The financial struggles at the club have been heavily stressed by the club's hierarchy for some time, with chief operating officer Chris Pearlman stating last month: "We have spoken publicly on a few occasions since relegation about the club’s current financial position. Simply stated, our current contractual commitments are higher than our expected income.

"Relegation has seen our annual income this season drop by approximately £60million. That is inclusive of the parachute payments we received from the Premier League."

The club has already made little secret of its cost-cutting approach in terms of playing staff, with Swansea emerging from the last two transfer windows with a profit of nearly £40 million.

The news comes just days after the club appointed Trevor Birch as their new chairman, a figure known for his financial expertise.

However, it's understood the decision was taken before his appointment.

Swansea currently sit 15th in the Championship, and are 10 points adrift of the play-off positions with 10 games to go.