There is currently a team of 28 players who are at he club's pre-season training camp in Portugal ahead of the Europa League qualifying rounds.
Five big name players have been left out of the squad and will not be part of Gerrard's plans for this coming campaign.
Last summer's signings Kyle Lafferty and Eros Grezda have no future at he club, as well as Graham Dorrans, Jason Holt and Jordan Rossiter, the latter two spent the season out on loan.
Gerrard said: “The board haven’t said and they haven’t put me under any pressure, but you don’t have to be a rocket scientist to work out the squad is too big.
“I have to be honest and tell people they won’t get the game time that will satisfy them.
“It’s not as brutal as saying get out as quick as you can, we don’t respect you and don’t love you any more.
“But as a manager you have to make tough decisions and you have to go with what you think is the best prepared squad to challenge next season."
With Joe Aribo set to become the club's seventh signing of the summer, Gerrard has revealed discussions with players have already taken place.
He said: “Yes, I have had to have difficult conversations with certain players, but I hope they understand I’m trying to be as respectful as I can to give them as much time to find a different route.
“In terms of contracts and what is out there for them, that is where their agents will come into it more than myself.
“It’s very easy for a manager to be selfish and keep them in the door for as long as you want and tell them later on in the window. I don’t think that is fair."