The Royal Shakespeare Company has announced a major restructuring plan, including cutting its workforce by 11%, as it confronts what its leadership describes as a 'perilous' financial situation. The proposals aim to save £2.8m annually against a projected shortfall of between £5m and £6m.
A 'Match Fit' Ambition Amid Financial Strain
Daniel Evans, the RSC's joint artistic director, explained the difficult decision, stating the organisation must find a 'financially resilient model'. He emphasised that the RSC has been unable to raise funds to match its running costs. The combination of a real-terms cut in Arts Council England funding, the ongoing cost of living crisis, and soaring material costs has created a perfect storm. Notably, the war in Ukraine has dramatically increased timber prices, directly impacting the company, which builds its own sets in Stratford-upon-Avon.
Evans linked the financial pressures to the company's commitment to accessibility, such as offering 25,000 tickets at £25. 'You can see how the situation develops, where our ability to raise [funds] alongside the costs increasing becomes a perilous situation,' he told the Guardian. He added that securing philanthropic donations and corporate sponsorship has grown more difficult, with 'less money to go around'. Last year, the company raised £6.6m in donations.
Details of the Redundancy Programme
The 11% reduction in headcount will be achieved through a mix of voluntary and compulsory redundancies. In a significant operational change, the company's specialist costume departments are set to be merged, with remaining staff potentially having to reapply for their roles under less favourable terms, including lower pay and fewer hours.
This move follows an invitation in September for half of the RSC's 835 employees to apply for voluntary redundancy as part of 'urgent' savings measures. The current consultation with staff and unions is ongoing and is set to conclude in January 2026. This represents the largest redundancy programme at the RSC since the pandemic cuts of 2020.
Industry-Wide Challenges and Union Response
In a statement, the RSC said it needs to become more 'agile, sustainable and resilient' and is consulting to 'purposefully link our structure to our ambition'. It acknowledged that the £2.8m savings would not alone bridge the financial gap, meaning further work on income growth and efficiency would be needed in the coming years.
Philippa Childs, head of the arts workers' union Bectu, recognised the financial pressures. 'Bectu recognises the financial challenges the RSC is currently facing – it is not the only company in the industry dealing with these issues,' she said. The union is supporting its members through the consultation process.
