Almost all campaign staff would be affected by the pay cut; entry level staff would be spared.
"It’s no secret that the contours of this race have changed from what was anticipated at the start. We would be less than forthcoming if we said we predicted in June that a reality television star supporting Canadian-style single-payer health care and partial-birth abortion would be leading the GOP Primary," the memo reads.
"We are making changes today to ensure Jeb is best positioned to win the nomination and general election," a campaign spokesperson said. "Jeb is the one candidate with a proven conservative record, bold ideas and the strong leadership needed to fix the problems America faces. We are moving our resources into the states to ensure that voters in primary and caucus states are introduced to his record and vision for the future."
Bush addressed the cuts today at Regents University in Virginia Beach, Va.
"This means lean and mean and it means that I have the ability to adapt," Bush said.
The campaign's payroll costs will be slashed by 40% beginning this week and the campaign is downsizing staff at campaign headquarters.
Travel costs will also be cut by 20%, which could limit the Bush's ability to lead a vigorous campaign and fundraising schedule. Bush has utilized charter flights so that he can fundraise in three different states in one day.
The campaign also plans to slash extraneous overhead costs entirely by cutting 45% of the budget that focuses on reaching out to and maintaining contact with voters.
Last quarter, the Bush campaign raised more than $13 million, and has $10 million on hand. The campaign burned through its cash at a surprisingly high rate of 86%.