Arsenal told staff last week that 60 jobs are at risk of redundancy, with the announcement coming just days after Mike Arteta was made the Premier League's highest-paid manager

Morale at Arsenal is understood to have plummeted following the news that 60 jobs have been put at risk of redundancy. The mood within the club has been described as 'low' at a time when Arsenal are enjoying their best period on the pitch for two decades.

Staff were told about the impending cuts a few days after Mikel Arteta was handed a lucrative new contract. The deal is worth £20million per year, making him the highest-paid manager in the Premier League.

When asked about the potential redundancies, Arteta said: "It was explained to me about the exercise, and the analysis that has been done across the club, and with the intention always to evolve to improve. Some decisions have to be taken, to put people in the right roles, and keep investing to achieve what we want to achieve and the success that we want to create.

"So that has been explained. Obviously, I am not the right person to answer that question, that's for sure, and hopefully everybody will respect that."

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Arteta has repeatedly insisted that Arsenal are a 'family' but the Telegraph report that morale has plummeted as a result of the announcement. Staff in the catering and travel departments are among those to be affected.

In contrast, the men's and women's first-team performance and coaching staff won't impacted. Also exempt are staff from the club's academy, Arsenal Women, Arsenal in the Community, the Arsenal Foundation and their site security teams.

It's noted that the 60 people who are affected by the process could be given opportunities in other departments as part of the restructure, which aims to address Arsenal having recorded a financial loss in the last seven years. But the decision has left a sour taste in the mouths of staff, who five months ago were celebrating becoming Premier League champions.

Their next target is to win the Champions League, having lost last season's final on penalties against Paris Saint-Germain. Ahead of Wednesday's game away to Bayern Munich, another of the favourites, Arteta made it clear how 'badly' he wants to lift the trophy.

"I've tried (to get over the PSG defeat), but I haven't managed," the Arsenal boss admitted. "That's the reality. So I tried for many weeks during the summer, but even today, and when I see the ball, when I (hear) the music, when I see the scenes, I want it so badly.

"We know that we have to go step by step, but I think that's fired up the team, and all of us individually, because we know that because of a penalty, we are not the champions of Europe. So, yeah, let's try again."