The Broncos, who were members of the inaugural Super League in 1996, retained a full-time squad despite their relegation in 2019 but have taken the decision to go part-time following a second successive season of disappointment in the Championship.
The club say they have also been influenced by an anticipated cut in central funding for 2022 following a reduction in income from the new television deal with Sky.
The announcement comes as the club prepares to move into a ground-sharing arrangement with AFC Wimbledon at their new Plough Lane stadium.
A statement said: “Following what has been a very disappointing season for the club and its supporters in 2021 which has seen the Broncos fall way behind the pace set by other teams in the Betfred Championship, including several part-time sides, it has been decided that in 2022 we will adjust our squad to that of a part-time team as part of an overhaul of the first team squad.
“Financially, the club will be receiving a vastly reduced central distribution in 2022 and we have had to make changes to offset this reduction which has led to the decision that has been taken by the club.
“The London Broncos will increase the level of financial input into our highly-successful academy and scholarship programme as well as work with the community game in London and the South East to continue to develop professional rugby league players as we take the opportunity to restructure the club ahead of our planned move to Plough Lane in 2022.
“Off the field, a huge amount of work is being undertaken in several areas to ensure that rugby league in London continues to thrive and that the Broncos are able to return stronger for a promotion push in seasons to come with a squad littered with home-grown players and a solid supporter base in our new home.”