Gregory has started his reign with two straight wins
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QPR's new manager John Gregory has vowed to make major changes to the playing staff at the Championship club.
He took over as boss at Loftus Road in September and one of his first tasks will be to trim the first-team squad.
"The squad is massive, it is too big for a club of this size. We can't carry 35 players, it's ridiculous and has got out of hand," he told BBC Sport.
"There will continue to be lots and lots of changes between now and the end of the season."
He added: "I have got about 35 players and they've all got to be paid and fed and clothed and, from time to time, some are staying in a hotel.
"I inherited a huge coaching staff and unfortunately on my second day we had to make some changes and I had to let some people go because we were vastly overstaffed and it was costing us a hell of a lot of money.
"The most important thing is we try to pick up as many points as we can and not worry too much about the off-the-field problems we have.
"But I'm having to address that side of it as well as trying to win matches on a Saturday."
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We have to address the problems of the past of overspending
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One player who will be not going anywhere is Marc Bircham, who has been taken off the transfer list at his own request following Gregory's arrival.
"It's great news for everybody," added Gregory. "He came to see me and wanted to be taken off it, which we've done.
"He's very much an integral part of the squad. He's my captain on the pitch, he has been outstanding for us in the last two matches, he's a great trainer and great lad to have around.
"He's a QPR freak, which helps when you are playing for the club you love, and he wears his heart on his sleeve every week - I just love having him around."
Gregory, who has a deal until the end of the season, added: "He's now playing for a new contract - the same as me, the same as Stevie Lomas and Marcus Bignot.
"Hopefully, all of us will get a new deal if we continue to impress."
Gregory failed in his bid to sign Lee Hendrie from former club Aston Villa on loan as QPR could not afford his wages, with the player moving to Stoke instead.
But, despite their financial struggles, Gregory is still hopeful of improving his squad.
He added: "We can only really loan players and we are up to our limit but if there is somebody who can help us I'm sure the board will do what they can to make it happen. We are looking for bargains here and there.
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He wears his heart on his sleeve every week - I just love having him around
John Gregory on Marc Bircham
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"We were very interested in Lee but it was going to be far too expensive for us. In the past we've gone ahead and done it but now if we can't afford to do it then we won't.
"We have to address the problems of the past of overspending. I think Lee was keen to come to QPR, but as it turns out, we have taken Jimmy Smith from Chelsea, who cost us a fraction of what Lee would have cost.
"So I'm delighted at getting Jimmy. He is never going to replace Frank Lampard or Claude Makelele or Michael Ballack or Michael Essien so it's probably more beneficial to him to come and play in our first team.
"He will be great for us. He came on for half-an-hour at the weekend and looked like he enjoyed himself and we certainly enjoyed having him.
"He's a smashing kid and he has a lot of potential and can do a very good job for us over the next month.
"Hopefully I can look to extend the loan to the end of the season. Whether it becomes permanent is down to Chelsea.
"Obviously they don't have to worry about the money but they might find it's in Jimmy's best interests to let him go and get a career elsewhere and might let him go for nothing - but we will have to wait and see."