According to Deadline, around 20 employees have been laid off from the late night talkshow.
Leno, who apparently makes $30 million for the programme, has allegedly had to take a "tremendous" pay cut in an effort to "save as many people's jobs as he could".
The Tonight Show, which returned this week after a two-week break due to Olympics coverage, has strong ratings but is threatened by the younger audiences of Jimmy Kimmel and Jimmy Fallon's late night offerings.
There has so far been no official word about the reasons behind the job cuts.
Leno recently celebrated the 20th anniversary of the Tonight Show.