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 The memo, seen by Reuters, said payroll costs were being slashed
by 40 percent and staff at the campaign's Miami headquarters
drastically cut back with some workers offered positions at reduced
pay in states that vote early in the nominating process, such as New
Hampshire, Iowa, South Carolina and Nevada.
The move follows a dramatic fall in Republican voters' support for
Bush's attempt to secure his party's nomination for the November
2016 election and to become the third member of the famous Bush
family to win the White House.
"We are making changes today to ensure Jeb is best positioned to win
the nomination and general election," the memo said.
Once considered the heavy favorite for the nomination, the former
Florida governor is running far behind poll leaders Donald Trump and
Ben Carson in national polls and in Iowa and New Hampshire, the
first two states on the 2016 election nominating calendar.
 Now, Bush is facing questions as to whether he has the ability to
remain a viable candidate. A key test will be next week when he
appears on stage with his rivals at the third Republican debate, in
Boulder, Colorado.
Appearing at a forum on Friday at Regent University in Virginia
Beach, Virginia, Bush was asked by moderator Pat Robertson whether
the cost-cutting was aimed at making his campaign leaner "or does
this mean you're in trouble?"
"This means lean and mean and means that I have the ability to
adapt," Bush said. "I have not met a person who thought Donald Trump
would be the front-running candidate at this point. God bless him
for his success in that regard. We'll see how long it lasts. But you
have to adapt."
In a poll of likely Iowa Republican caucus participants released on
Thursday by Quinnipiac University, retired neurosurgeon Ben Carson
led the Republican field with 28 percent support, followed by Trump
at 20 percent. Bush was tied in sixth place with former business
executive Carly Fiorina with 5 percent.
Bush's move to reduce expenses comes a month after the departure
from the race of Wisconsin Governor Scott Walker, who ran out of
cash.
 "If you do the right thing about budget cuts at the right time, they
don't necessarily affect your chances," said Republican strategist
Charlie Black, citing the examples of Ronald Reagan in 1979 and John
McCain in 2007. DONOR RETREAT THIS WEEKEND
Bush's heavy policy focus has shown him to be among the more serious
candidates in the Republican field, but he has often been drowned
out by Trump's bombastic rhetoric and has lacked the polished
communication skills of rivals such as U.S. Senator Marco Rubio of
Florida.
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Bush announced last week that his third-quarter fund-raising was
$13.4 million, a competitive sum but not enough to finance the large
campaign operation he had built. As of last week he had $10 million
in cash on hand.
"It's no secret that the contours of this race have changed from
what was anticipated at the start," the memo said.
The Bush campaign also sought to reassure donors who have started to
doubt that their candidate still has a path to the nomination.
Bush and his senior aides are staging a two-day donor retreat in
Houston on Sunday and Monday that will feature appearances by his
father, former President George H.W. Bush, and his brother former
President George W. Bush.
The retreat will give donors a sense of where the campaign stands
now and what is planned for the next 100 days, an aide said.
The staff deployments from Miami will have a special focus on
increasing the Bush presence in New Hampshire. Bush will make more
trips to the early voting states as well.
"We are unapologetic about adjusting our game plan to meet the
evolving dynamics of this race to ensure that outcome," the memo
said.
The cost-cutting moves were welcome in the Bush donor community,
where there have been concerns about his prospects.
"I particularly appreciate that this strategy shift was quick,
strategic and bold. As a donor, I am thrilled to see the campaign
focus the lion's share of resources on voter contact and this will
redirect energy to early states," said Slater Bayliss, a Florida
lobbyist who is bundling donations for Bush.
(Additional reporting by Ginger Gibson; Editing by Paul Simao and
Frances Kerry)
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