Carnegie Hall, N.Y. Philharmonic Cut Staff as Aid Runs Out
Carnegie Hall, N.Y. Philharmonic Cut Staff as Virus Aid Runs Out
(Bloomberg) -- Leading performing-arts institutions in New York City are reducing staff as pandemic-related closures are stretching into 2021, with millions of dollars in federal aid running out.
Carnegie Hall this week furloughed 51 full-time workers, or 19% of its active staff, and implemented pay cuts for the remaining employees after extending its closure until at least Jan. 7. The New York Philharmonic recently eliminated 44 jobs, about 40% of its administrative staff, through a mix of furloughs and terminations. Members of the 98-person orchestra all kept their jobs, although their base salaries were reduced by 25%.
Both Carnegie Hall and the New York Philharmonic were among cultural organizations that received forgivable loans from the Payment Protection Program, the $669 billion stimulus package designed to keep employees of U.S. small businesses and nonprofits on payroll during the coronavirus pandemic.
The staff reductions, about three months after the art centers each got more than $5 million in PPP assistance, adds to evidence that the outlook for the labor market will worsen as stimulus funds expire, particularly in sectors such as the performing arts and entertainment that remain for the most part shut.
The New York Philharmonic used its $6.8 million PPP loan to pay 250 workers, including the orchestra and administrative offices, according to spokesman Adam Crane. The nonprofit reduced salaries in early June, including a 56% cut in total compensation for music director Jaap van Zweden. Of the administrative positions eliminated late last month, 22 were permanent and 22 through furloughs, he said.
“We hope to bring them back as soon as we can,” Crane added.
Carnegie Hall said its $5.5 million loan in April helped cover payroll costs for about 270 employees through last month.
In total, Carnegie Hall has furloughed or terminated 131 employees since mid-March, when the venue closed to comply with the lockdown regulations. Eighty positions were eliminated right away, including those of ushers and stagehands, according to spokeswoman Synneve Carlino. Executive and Artistic Director Clive Gillinson has taken a voluntary 25% salary cut, she said.
The Metropolitan Opera and the Lincoln Center for the Performing Arts, which didn’t get PPP assistance, also furloughed workers. The greatest number by far is at the Met, which furloughed 2,279 employees, according to spokeswoman Lee Abrahamian. Approximately 300 employees are still working, a combination of union and non-union personnel, and Peter Gelb, the Met’s general manager, waived his $1.49 million annual salary until operations are back to normal, Abrahamian said.
The Lincoln Center furloughed or laid off about 50% of its workers, said spokeswoman Isabel Sinistore. The cuts affected 191 people, according to a June 30 filing with the New York State department of labor.
“These have been excruciating decisions,” Sinistore said.
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