Museums Still Reducing Expenses

Carol Vogel of the NY Times reports that the Guggenheim Museum will reduce staff by 8%. The 8% reduction in staff will impact about 25 positions at the museum. The interesting aspect of the article is the museum has seen record attendance, now at 1.1 million people per year. The job cuts will include reductions in all divisions, including curatorial staff.

Like many museums, the Guggenheim has been hit hardest in its endowment funds, which are reported to be down about 18% and now stands at $113 million.

Vogel reports “This is an exercise in making our income and our expenses be clearly aligned,” said Richard Armstrong, who was named director of the Guggenheim Foundation and the museum in September, succeeding Thomas Krens, who had led the institution for 20 years. “After six months it became clear to me, to the senior staff and to the board that expenses had to be reduced. And we have tried to be as careful as possible.”

Vogel continues In addition to the staff cuts, the Guggenheim is also economizing in all administrative areas. Staff travel, for example, has been reduced, as have other expenses. In total, Mr. Armstrong estimated, the museum will have trimmed its annual operating budget by about $6 million, to about $60 million.Still, he emphasized, no exhibitions have been canceled and the museum’s hours will remain the same. Attendance stands at an all-time high of 1.1 million visitors a year. “The shows will go on a bit longer, but our commitments remain intact,” he said.

To read the rest of the NY Times article, click HERE.