Just get rid of the players that aren't good enough.
Cech (rightly retiring)
Ospina (not good enough, even as back-up to Leno)
Jenkinson (time to move on)
Mustafi (bye)
Monreal (far too old, past it and injury prone)
Lichtsteiner (obvious one)
Elneny (awful)
Mkhitaryan (too flakey and too much money)
Ramsey
Welbeck (do not renew)
When rebuilding the squad we need to figure out what we're trying to do in the next 1-3 years and who's good enough to achieve those objectives from what we have and who we bring in.
It's important to try and build a team that can grow and peak together. Realistically, we can't build a team and squad to take on Liverpool and City next season, so we've gotta aim for the top 4 and decide what we have now and what we need to buy to achieve that. It's absolutely vital that we plan ahead and map out a plan that year-on-year improves the team and the squad and gets us to the level of legitimate title challengers as soon as possible.
That comes from squad building in a way that integrates the development level of the core players. It is no good having Guendouzi (19), Torreira (22) and Iwobi (22) starting most weeks with Koscielny (33), Sokratis (31) and Aubameyang (29) -- we need an XI, more a core group of 15 players or so really, that are all going to peak or at least be at the required level at the same time. Not some on the way up, not yet at the required level; others on the way down, no longer at the required level; and players at their peak, ready to go right now and not in 2 or 3 years when the younger ones are catching up.
Look at Liverpool's excellent job of building their squad in the past 3 years. Not just good players at the right level for what they're trying to do, but all peaking individually at the same time, which should manifest into a steady improvement and they peak as a group.
Alisson 26
Van Dijk 27
Matip 27
Lovren 29
Robertson 25
Fabinho 25
Keita 24
Chamberlain 25
Wijnaldum 28
Henderson 28
Lallana 30
Mané 27
Salah 25
Firmino 27
Lots of players at their peak or close to it, and all the really important ones have at least 3 of their best years ahead of them (in theory anyway). Also a couple of young players that contribute: Joe Gomez (only 21 but at the required level for sure) and Alexander-Arnold (average as hell but a RB so he's insignificant enough that it doesn't matter) and a good oldie in James Milner.
Barring players wanting to leave or bad luck with injuries (not buying injury prone players is another hugely important factor in squad building) there's no other reason they shouldn't have a very good couple of years as a squad.
We have got to get serious and stop the opportunistic, short-term approach to building a squad that has been our signature in the past 10 years. It's not just about money, it's about good strategy.