A voluntary redundancy plan has been outlined to Munster Rugby staff due to mounting financial pressures at the province.
Employees were shocked when informed of the situation at a meeting on Tuesday. Up to 100 staff are eligible for the plan, but it is hoped that compulsory measures can be avoided.
Senior professional players and coaching staff will not be directly affected by the proposed measures.
However, there had already been plans in place to slightly reduce the size of the playing squad ahead of next season, reflecting a broader effort to control costs in a challenging environment.
It is believed that Munster, along with the other three provinces, has recently undertaken an internal financial review.
Munster is understood to have recorded losses of up to €1 million last season.
It was a campaign in which the province failed to secure a home fixture in the knockout stages of either the URC or the Champions Cup – matches that typically generate substantial revenue.
That trend has continued this season, with the side again missing out on a home tie in the Champions Cup knockouts and instead entering the Challenge Cup playoffs.
Currently positioned in sixth place in the URC, there is also uncertainty over whether they can secure a home quarter-final in the competition.
Clayton McMillan’s side play the Bulls on Saturday. It is the second game of their trip to South Africa – they are looking to bounce back from the damaging 45-0 defeat to the Sharks last weekend.
While on-field performance has played a role in shaping the financial picture, it is not seen as the sole factor behind the decision, with commercial and sponsorship income not reaching expected levels.
“Munster Rugby can confirm that we have initiated a Voluntary Redundancy Programme and have begun consultation with our staff,” read a statement from the province.
“Revenue has trended below forecast in the context of a challenging economic environment and this is the next step in aligning our cost base with income in order to establish a sustainable financial position.
“Our priority is to communicate with and support our colleagues first. Munster Rugby will be making no further comment at this time.”
In a statement to The 42, the IRFU said that it will continue to support Munster through this challenging period.
“The IRFU works closely with all four provinces on an ongoing basis to address the shared challenges facing the game, including long-term financial sustainability,” the Union said.