Museums Across the US Are Furloughing and Laying Off Workers—But Hopeful They’ll Get Help From the Federal Government

A little over three weeks ago, museums’ relied-upon income from
tickets, event rentals, and retail essentially fell to zero
overnight. Now, museums large and small across the United States
are steadily laying off and furloughing staff as they grapple with
their new financial reality. Many are hoping to find some relief
through the new payroll loan program offered by the federal
government—but that process is already proving to be far from
simple.

The latest major institution to make cutbacks is the Museum of
Fine Arts, Boston, which announced it would remain closed through
June 30 and has furloughed around 300 staff members—more than 40
percent of its 750-strong workforce—as a result.

The museum estimates that it will experience a loss of between
$12 million to $14 million due to the three-and-a-half month
closure, according to WBUR. In a
statement, an MFA Boston spokesperson said it would “implement cost containment measures, utilize endowment funds
to the extent possible, and furlough staff eligible for
unemployment insurance and new government
programs.” 

The spokesperson added that all eligible employees would receive
full health care benefits and the museum planned no layoffs at this
time. The MFA Boston’s director Matthew Teitelbaum will also reduce
his compensation by 30 percent during this period. (His 2018 salary
was $841,921, according to tax records.)

Elsewhere in the city, the ICA Boston is paying all full-time,
part-time, and scheduled hourly employees through June 30 and is
submitting to the US small business payroll program, a
representative confirmed.

No word yet on when museums can expect to hear back on
eligibility, but according a Chronicle of
Philanthropy report, executives at nonprofits across the
country reported confusion “akin to a bank run” when it came to the
Paycheck Protection Program, a loan from the government designed to
incentivize small businesses to keep their workers on payroll.
Complaints included overwhelmed bank websites, confusing
information about eligibility criteria, and “a persistent fear
the program will leave small nonprofits high and dry in the rush
for funds.”

Some institutions are not even in a position to wait to see if
they qualify for government aid. The South Street Seaport Museum in
downtown New York City said projected revenue losses have already
forced it to reduce staff to a skeleton crew. In a statement, the
museum’s president, Captain Jonathan Boulware, called the effects
of COVID-19 “devastating” and “immediate.” The museum expects
operating revenues to be roughly half of what they anticipated.

“We have already taken dramatic corrective action, laying off
nearly 20 program staff last week,” he said. “As of next week,
every remaining staff member will be furloughed or have their
compensation sharply reduced.”

Even more starkly, other institutions are shuttering for good.
The Indianapolis Contemporary (I/C), formerly known as the
Indianapolis Museum of Contemporary Art, has announced plans to
close permanently after 19 years of operation. The board decided it
was not “economically feasible” to continue amid the impact of
coronavirus and other financial strain.

Those institutions that do have enough financial stability to
forge ahead are doing their best to scrimp, save, and reshuffle.
The Detroit Institute of Arts, which has already survived serious
financial challenges and economic downturns during the city’s
bankruptcy, announced today that it would postpone two exhibitions
originally scheduled for June, including the highly
anticipated “Van Gogh in America,” which will now open in
October 2022.

A DIA representative confirmed that the museum, like a number of
others we contacted, is working with their bank to apply for
federal government support. But at the moment, leadership is
preparing the upcoming fiscal year budget and has not made any
concrete decisions regarding staff beyond a salary and hiring
freeze “for the foreseeable future.” The spokesperson added: “Our
priority is to keep our talent and avoid layoffs at this time. As
the COVID-19 situation evolves, we will continue to monitor the
museum’s financial position and make adjustments if required.”

Elsewhere, the Brooklyn Museum—which also applied to the
Paycheck Protection Program—has committed to paying and providing
benefits to its full staff, including part-time employees, but only
through April 17, according to a representative, “while we explore
all possible ways to keep our team as whole as possible during
these uncertain times.”

The post Museums Across the US Are Furloughing and Laying
Off Workers—But Hopeful They’ll Get Help From the Federal
Government appeared first on artnet News.