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Bush campaign downsizes staff, cuts payroll costs by 40%: Source

Jeb Bush's struggling presidential campaign is broadly cutting costs and focusing on early voting states, a source confirmed to CNBC on Friday.

The former Florida governor's organization will reduce payroll by 40 percent, chopping salaries across the board except for entry level staff. Bush's campaign will also cut its headquarters staff, as well as overhead and travel costs.

"We are making changes today to ensure Jeb is best positioned to win the nomination and general election," the campaign said in a statement. "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."

Republican presidential candidate Jeb Bush's campaign reported to be cutting campaign costs.
Brian Snyder | Reuters
Republican presidential candidate Jeb Bush's campaign reported to be cutting campaign costs.

Bush, once considered the frontrunner for the Republican nomination, has fallen behind some of his rivals in both polling and fundraising. In the third quarter, his campaign committee raised $13.4 million, ending the period with $10.2 million on hand.

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Bush, who other candidates have often portrayed as an establishment Republican, has taken the backseat to businessman Donald Trump and retired neurosurgeon Ben Carson in a crowded field. Both candidates lead him in recent polling in Iowa, an early voting state.

Bush plans to spend more time engaging with voters in person, a little more than three months before the start of primary contests.

—CNBC's John Harwood contributed to this report.

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