Sotheby’s and Christie’s Place Workers on Furlough and Cut Executive Pay as Art Businesses Feel the Impact of Coronavirus Postponements

Major auction houses are feeling the impact of the economic
quake set off by COVID-19. Both Sotheby’s and Christie’s are
furloughing workers, cutting executive pay, and searching high and
low for cost savings now that their salesrooms are largely closed,
major New York spring sales have been either postponed to June or
pushed entirely online, and marquee estates and consignments like
the $700 million Macklowe collection are pulling back from the
market until the outlook improves.

Sotheby’s is furloughing approximately 200 people, or roughly 12
percent of its staff—measures that were first reported by the
Wall Street
Journal. In a town hall meeting with employees on
April 1, Sotheby’s newly appointed CEO Charles Stewart informed the
auction house that mandatory furloughs and some staff cuts were
taking place, although he did not offer concrete figures. Artnet
News understands that specialists were not affected, but some
support staffers, including cataloguers, who work on projects
related to live auctions have been placed on furlough.

Employees in the US and the UK who were not laid off or
furloughed will take a 20 percent pay cut through June 1.
Executives, including Stewart himself, will take an additional 10
percent cut. Meanwhile, overtime pay will be temporarily suspended
and compensation incentives will be largely delayed until fall.

The auction house, which employs roughly 1,700 people across 40
countries, closed 80 offices and 10 salesrooms on March 22 due to
the outbreak.

“Like many businesses, Sotheby’s is adjusting to the challenging
circumstances resulting from COVID-19 and taking the necessary
steps to protect our employees and the future of the company,” a
Sotheby’s representative said in a statement shared with Artnet
News. “We have considered every avenue including temporary
compensation adjustments (including our leadership), furloughs and,
regrettably, a small number of staff reductions. While we weather
this period, we remain focused on supporting our clients with a
variety of services and ensuring that we are well positioned for
the moment we can resume our normal business operations.”

Since the house was acquired by telecom billionaire Patrick
Drahi—who has been dubbed “the cost
killer” in the French press—at the end of last year, it has
already experienced significant personnel changes. Dozens of
staffers have departed in recent
months, either through layoffs or due to a voluntary severance
program put in place for top executives as part of the merger
agreement.

Meanwhile, Christie’s has not been immune to the squeeze,
either. A representative for the house said that the company is
taking “necessary steps to adapt to the ongoing situation including
increased digital engagement and private sales as well as
commensurate, targeted cost management measures.” Those measures
include reductions on travel and events, cutbacks on work with
consultants, outside contractors and temporary staff, and taking
advantage of subsidized furlough programs like those offered by the
UK and French governments.

The company also noted that it is running a “voluntary salary
sacrifice for senior executives” who will waive a portion of their
monthly pay for “a defined period of time.” The measures “are
difficult, but will not compromise our service to clients, and are
intended to help protect our company and particularly staff whose
wages and salaries are lower,” the statement continued.

Phillips auction house declined to offer details of any
cost-saving measures. “We are reviewing our operations on a daily
basis and have no updates at this time,” a representative said.

A spokesperson for Bonhams did not immediately respond to a
request for comment.

The post Sotheby’s and Christie’s Place Workers on Furlough
and Cut Executive Pay as Art Businesses Feel the Impact of
Coronavirus Postponements appeared first on artnet
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