Everton director of football Marcel Brands has stressed that the club will need to "offload" a number of players this summer in order to raise transfer funds.
The Toffees spent over £200m last season signing the likes of Jordan Pickford, Gylfi Sigurdsson and Cenk Tosun, but endured a difficult campaign before eventually finishing eighth in the Premier League.
Marco Silva was officially unveiled as the club's new manager on Monday but Brands admits the Portuguese may not have as much money to spend this summer as former boss Ronald Koeman.
When asked by Sky Sporrs if club owner Farhad Moshiri would provide a similar transfer fund to last summer, Brands said: "No.
"First of all we need to offload players to raise money [to spend], and also salary-wise. But it's not only a money thing.
"Of course money is important but also, for a coach, it is not workable to start with 38 players in your squad.
"We have to look for a squad Marco can work with and I think there always has to be space for young players to come to the first team.
"That has to be, let's say, 25-30 players. Now there are 38 and a lot are not young any more. They are players who have arrived. We have to be honest when we take the decision with these players.
"Do they have prospects here at Everton? Some of the conversations will not be nice but I think Marco must start with a squad that everyone is eager to play for and has prospects to play."