The news comes just days after the high-profile exits of judges Jennifer Lopez and Steven Tyler.
It has been alleged that Lopez, who earned between $15m and $20m for her role on the reality competition, was angling for her third raise since 2010, and the producers' reluctance to comply may have contributed to her exit.
Tyler's exit appears to be more music-oriented, as he plans to spend more time with band Aerosmith on the road and in the studio.
Fellow judge Randy Jackson is also rumoured to be leaving the show, with Miley Cyrus, Charlie Sheen and Jerry Lewis all being linked to replace the trio over the past week.
This season of American Idol has seen ratings fall 25% from last year, with the lowest-rated finale ever. The show's ad revenue - currently between $468,100 (£300,517) and $502,900 (£322,858) per 30-second spot - is likely to drop as a result.
According to The Hollywood Reporter, the exits have reportedly seen a number of hastily-arranged meetings between show insiders during the last couple of days, as they scramble to attempt to replace the pair.
Any attempted budget cuts could mean that recruiting top-level judging talent will prove even more difficult.
However, a source close to the production has denied the report, describing the notion that the show will be cutting back as "inaccurate".
Watch footage of Steven Tyler, Jennifer Lopez and Randy Jackson on American Idol below: