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The controversial Italian took charge of Leeds last month in a deal that saw him purchase a 75 per cent stake in the club from GFH Capital.

Cellino won his appeal to seize control after the Football League had rejected his initial bid due to his recent conviction for fraud and tax evasion back in his homeland.

He has spent the last few weeks conducting a thorough investigation into the running of the club before he arrived.

Now Starsport can reveal Cellino has decided he needs to release a huge number of staff who work at both Elland Road and the club's Thorp Arch training complex.

It is understood at least 70 people will be either sacked or made redundant as Cellino attempts to streamline the workforce and reduce overheads.

Cellino has been waiting until the end of the season before deciding to take drastic action.

It means those who work for the Championship outfit are now left in limbo and face an anxious wait to discover their futures.

The purge is understood to include management, administration staff and members of the general workforce.

A Leeds source said: "He's spent the past weeks assessing the running of the club and what needs to be done.

"The wage bill at Elland Road has alarmed him and he will take no prisoners when it comes to getting it down to a more manageable level."

But it remains to be seen if Cellino is planning to axe current boss Brian McDermott.

Cellino will hold talks with McDermott next week before making a decision, with the former Reading boss due £2m in compensation if he is sacked.