GETTY ANNOUNCES BUDGET CUTS AND LAYOFFS

The J. Paul Getty Trust will slash its workforce by 14 percent—a loss of 205 jobs—under a newly adopted budget for the 2009–2010 fiscal year that begins July 1, reports Mike Boehm for the Los Angeles Times. Getty officials said they expect to lay off ninety-seven current regular employees, with the rest of the reduction to come from positions either now vacant or likely to come open through normal turnover.

The Getty is America’s wealthiest arts institution, but its ability to pay its bills depends almost entirely on earnings from its endowment. Getty officials said the endowment lost 27 percent of its value from last July 1 through March 31. The trust now has $4.2 billion—down from its $6.4 billion peak in 2007, and lower than its deepest trough during the recession year of 2001–2002.

Next year’s budget for regular operations will be $220 million, down 22.5 percent from the current $284 million. Spokeswoman Julie Jaskol said Monday that cuts will be made across the full range of Getty operations, rather than eliminating any single large program or function. Besides running a museum, the Getty Trust issues grants to other arts institutions and operates institutes dedicated to art research and global programs in art conservation.

Remaining employees won’t get raises, and “senior leadership” will take pay cuts of up to 6 percent. James M. Williams was the trust’s top earner last year at $1.28 million, according to the Getty’s financial statements, while Getty Trust president James Wood made $1.1 million and most of the rest of the management team was paid $397,000 or more. Since February 21, Getty employees have been venting their anger and anxiety over the impending cuts anonymously on a blog dedicated to the subject.