Julián Castro (D-Texas), the 2020 Democratic presidential candidate, announced Thursday that he is laying off his New Hampshire and South Carolina election staff. The campaign alerted impacted staff on Monday that their final workday is next week. 

Castro will focus on Iowa and Nevada – it is purchasing a $50,000 Iowa statewide television ad campaign, which begins Tuesday morning.

Castro has struggled financially to meet the organizations of Sen. Elizabeth Warren and Sen. Bernie Sanders. Laying off state teams releases some of the necessary capital for his long-shot chance to face off against Trump as the 2020 Democratic presidential nominee. 

Additional funding efforts include an appeal to supporters in late October – Castro stated his campaign needed an extra $800,000 to remain in the race before the first nominating contests in February. 

Democratic opponent Sen. Kamala Harris (D-South Carolina) also announced her campaign was cutting down on labor costs to focus on the Iowa nomination contest in February.

Castro continues to struggle to raise his capital and his poll numbers above low single digits. His decision may be part of a plan to appeal to previous Beto O’Rourke supporters, the other Texan Democratic nominee who dropped out of the race last week.