The Royal Shakespeare Company has taken the drastic step of offering voluntary redundancy to its entire workforce amid what it describes as "significant financial challenges" facing the organisation.
In an internal email sent to staff on Wednesday, executive director Catherine Mallyon and artistic director Daniel Evans revealed the company is seeking voluntary redundancies across all departments. The move comes as the prestigious theatre company grapples with reduced Arts Council funding and soaring operational costs.
Perfect Storm of Financial Pressures
The RSC, one of Britain's most celebrated cultural institutions, finds itself caught in a perfect storm of financial pressures. Arts Council England funding has been cut by 8% for the 2023-26 period, amounting to a reduction of approximately £800,000. Meanwhile, energy costs at their Stratford-upon-Avon home have skyrocketed by over 70% since 2022.
"Like many organisations we are facing significant financial challenges," the directors stated in their communication to staff. "We need to reduce our costs to ensure we can continue to create world-class work in the future."
Staff Reaction and Union Response
The announcement has sent shockwaves through the organisation, with many employees expressing concern about job security. The RSC employs approximately 650 permanent staff alongside hundreds of freelance artists and technicians.
Bectu, the union representing theatre workers, has raised serious concerns about the redundancy programme. A spokesperson commented: "While we understand the financial pressures facing arts organisations, we will be scrutinising this process closely to ensure it is truly voluntary and that no staff feel pressured to leave."
Broader Arts Sector in Crisis
The RSC's financial troubles reflect a wider crisis affecting Britain's cultural sector. Multiple regional theatres and arts organisations have reported similar financial difficulties following reduced public funding and changing audience habits post-pandemic.
Industry analysts note that even prestigious institutions like the RSC are not immune to the economic pressures facing the arts. Ticket sales, while recovering, have not yet returned to pre-pandemic levels for many productions.
The company has assured staff that it remains committed to its artistic programme and Stratford-upon-Avon home while navigating these financial challenges. Further details about the redundancy terms and timeline are expected to be communicated to staff in the coming weeks.
