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Spanish second division side Malaga CF announced on Tuesday it will lay off workers as a "necessary measure" to ensure the future of the club.
Malaga did not reveal the number of employees to be made redundant as part of the ERE (an administrative labour proceedings), but reports in Spain claim 50 will be affected, with the club saving around €1m with this action.
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A club statement said: "The Club announces that it has taken the decision to present an employment regulation file for the termination and/or suspension of employment contracts.
"Over the past few months, the club has been undertaking various measures to ease the difficult economic situation it is experiencing. The restructuring of the club joins this package of necessary measures to ensure the continuation of Malaga CF."
No Malaga player is expected to be affected by the decision taken by the club.
Spanish football was halted on March 12 due to the coronavirus pandemic and no date has been set yet for its return. Malaga ended the 2018-19 campaign with a profit of €3.3m.
The Royal Spanish Football Federation (RFEF) announced in March a €500 million bailout to the country's first and second division clubs to cope with the financial impact of the coronavirus pandemic.
La Liga, meanwhile, advised teams to apply under Spanish labour legislation for an ERTE (Temporary Reduction of Employment Action), which many clubs, including Barcelona, Atletico Madrid and Valencia did.
However, Malaga has decided to take permanent action and urged fans to be patient.
"The club thanks fans and season ticket holders for their support during these difficult times and asks for their understanding in light of this complex process that starts today and that the club will endure in the coming months, with the sole purpose of committing to the future of our shield," the statement added.
Malaga were 15th in the standings with 38 points from 31 games when the league was halted.