The Nobel Foundation announced Monday that it will reduce the monetary award for its prestigious annual prizes by one-fifth this year, according to CNN.

The Stockholm-based body said the trim from 10 million to 8 million Swedish krona ($1.4-million to $1.1-million) for each prize winner will protect its long-term capital prospects. The foundation has failed to cover operating expenses in recent years.

“The Nobel Foundation is responsible for ensuring that the prize sum can be maintained at a high level in the long term,” executive director Lars Heikensten said. “We have made the assessment that it is important to implement necessary measures in good time.”

The 2012 Nobel Prizes will be announced in October.