David Evans, Labour’s general secretary, presented the NEC with the party’s plans to recover from the current financial situation. The website LabourList reported that Mr Evans said during Tuesday’s meeting: “We don’t have any money”.
The dire situation means Labour is now considering cutting up to a quarter of all staff in a bid to save money for a future general election.
Employees have been offered voluntary redundancy which included a severance package of three weeks’ pay for each year they have served.
Tuesday’s review is said to have included a recommendation that up to 90 jobs are cut.
Trade unions have hit out at the party over the proposition.
Labour's biggest donor, Unite, said: "While working-class communities are continuing to bear the brunt of the sickness and employment worries made much worse by Conservative mishandling of the pandemic, Labour is abandoning the field of battle against this government to turn its fire on its members instead."
Sir Keir Starmer's Labour Party had previously come under fire over its ability to oppose Boris Johnson's Conservative Government.
Speaking on BBC Politics Live, Labour MP Rosie Duffield lashed out at the lack of unity within the party and how it looked “ridiculous and ineffective”.
She said: "You know, I think it would be great to have Labour more united.
DON'T MISS:
EU blasted for failing to stop illegal migrants entering UK [VIDEO]
Priti Patel in talks with Denmark over asylum seeker processing centre [INSIGHT]
Priti Patel blasts TikTok for glamourising lethal migrant crossings [REACTION]