The report said Newcastle's managing director Lee Charnley informed the staff in an email on Monday, saying the decision was taken to safeguard the club's future.
British finance minister Rishi Sunak announced earlier this month that furloughed workers can claim 80% of their wages up to 2,500 pounds ($3,081) per month as part of the Coronavirus Job Retention Scheme.
Newcastle owner Mike Ashley, who owns a controlling stake in the club, has not always been popular with fans, thousands of whom skipped matches this season to protest his ownership.
Ashley was criticised this month after a number of supporters were charged for their next season ticket, despite the ongoing suspension of the Premier League.
Ashley, who also holds a controlling stake in sports retailer Frasers Group, issued an apology last week for lobbying the government to keep his sports stores open after being told to close them as part of the coronavirus lockdown.
(Reporting by Hardik Vyas in Bengaluru; Editing by Tom Hogue)