There are two options(in this order):
1. Evaluate if, with a few good pieces, you could contend. A lot of people think "REBUILD!!!" immediately when you could possibly parlay that turd into a playoff spot and recoup some of that first season cost. If they're old and declining, the salaries will be off the books soon enough and you'll still have some good pieces that you just acquired when they're gone.
2. If you have a bloated payroll and a bunch of poor players, try to move them. Because they suck, it's unlikely you'll get much in trade. Waive them, designate them but don't release them if you can't trade them. Stay active all season, maybe you'll find a trade partner who suffered an injury and suddenly has a stopgap need.
Looking at your team, you have 68m in payroll and that's really not a bad team. It certainly doesn't have the look of a 100 loss team. You need some hitting but the pitching should be at least league average. I'd look at the FA market and see if there's enough hitting to make a run.