'Very difficult decision': Back-to-back financial losses force Football Australia to axe 20 per cent of workforce

Football Australia (FA) is set to axe more than 20 per cent of its workforce as it prepares to undergo a significant "reset and restructure" due to financial losses.

Chief executive Martin Kugeler conceded the organisation had failed to control the rise of the Matildas after a successful run at home at the 2023 Women's World Cup.

It has been 12 months since FA announced it had suffered a record $8.5 million deficit in its accounts, but the organisation is now preparing to disclose a greater financial loss.

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Kugeler, who has just hit 100 days in charge of FA, said the organisation would announce greater financial losses than last year at its annual general meeting next Thursday.

He said he had been forced to make the "very difficult decision" to implement a net reduction strategy, which employees have been made aware of.

Kugeler said the staffing cuts would reshape FA around "growth and innovation".

The financial losses will have no impact on the Socceroos' World Cup preparations or the Matildas' upcoming international friendlies. The Sydney Morning Herald reported fewer than 200 staff would be affected.

"We are not where we need to be on the financial side," Kugeler told reporters on Tuesday.

"And that's what we have to address. We have to live within our means. We have to establish an organisation and a structure that will support taking advantage of the opportunities that we have ahead."

The organisation is not alone in implementing dramatic cost-cutting strategies to stay afloat, with the Australian Professional Leagues (APL), which runs the A-League, also in the same situation despite record participation numbers.

While the financial situation is not ideal for either organisation, FA and the APL have finally reached a settlement over their historic debts relating to product betting fees.

That settlement will form a stronger domestic foundation for Kugeler to build upon.

"Two significant losses, and increasing losses year-on-year, are obviously not a situation that is sustainable or acceptable," Kugeler added.

Kugeler refused to criticise the actions of those that held his job before him, simply declaring that would be "unfair".

But he did concede that there had been a collective failure to turn past opportunities into greater financial gains.

"Have we capitalised, as Football Australia, the maximum out of that (women's World Cup) tournament? We'll probably agree on this call that we haven't," he said.

"I think if we look at what it has done for our Matildas national team, I would say also for women's sport in general, that tournament has brought forward the Matildas as the team … for women's sport in this country.

"The success that we see in the participation space, how many girls are now starting to play football, that is based on the success of the Matildas, obviously driven by their performance and the success at the World Cup, but also at the Asian Cup.

He said the Asian Cup was another good push for awareness of women's football and the Matildas.

"We have got an exciting time ahead of us with the Women's World Cup in Brazil but then also with the Olympics … that's where we need to capitalise better than in the past.

"That's obviously back to what I said before, building a pillar and a focus on engagement … and that's why I've established that as a new pillar in the organisation."

Kugeler would not confirm if he was aware of the severity of FA's issues before he accepted the role as chief executive.

Despite the financial losses, Kugeler is determined he will retain the signature of Tony Popovic. It is the first time the organisation has publicly confirmed Popovic's future.

"We would like Tony Popovic to continue as Socceroos coach," he said.

"I've got the impression that he would like to continue as Socceroos coach.

"The discussions are ongoing with his agent. He's obviously focusing on the preparation of the World Cup."