Wings chairman Mark Goldberg outlined the reasons behind the decision in Saturday’s programme.
Some of King’s staff have left the club with senior players Matt Paterson and John-Paul Kissock joining Havant and Whitehawk.
Despite the blow, Welling still managed a big win on Saturday as they defeated Eastbourne to move into fifth in the National League South.
Chairman Goldberg wrote: “Overall, the first half of 2018/19 has produced good results and we find ourselves in one of the play off positions, which was our target for the season.
“We have 41 points, which should mean that our National League South status is safe.
“Unfortunately, we were unable to reach the first round of the FA Cup, or to progress in the FA Trophy and therefore benefit from the associated income that can be generated.
“This, combined with reduced sponsorship income and crowd figures that have not improved, means that in order to balance the books, we now need to make a reduction in our playing budget accordingly whilst trying to remain as competitive as possible.”
King says it’s been a tough week but hasn’t lost confidence that they can still earn a top seven finish.