One in five Royal Academy jobs to be axed

The Royal Academy of Arts (RA) has revealed that its council has voted to approve plans to cut up to 60 jobs as it undertakes restructuring to “sustain its position in the future”.

The organisation, which according to its most recent annual report has 334 full-time equivalent permanent employees, said current unfilled vacancies are expected to account for half of the cut posts to “mitigate the workforce reduction”, leaving around 30 employees at all levels at risk of redundancy.

“Together with many in the arts sector, we are facing a serious financial challenge,” interim secretary and chief executive Natasha Mitchell told The Art Newspaper.

“We have a robust plan to improve the RA’s financial position and the proposal to reduce our workforce has been put forward after careful consideration.

“We understand the profound impact these proposed changes will have and we are committed to supporting affected employees through this transition,” said Mitchell who was appointed following the departure of Axel Rϋger last year.

“This is a challenging time for all involved, however, it is our belief that these steps are critical for ensuring a sustainable future for the RA.”

‘Reckless mismanagement’

A representative for the IWGB union (Independent Workers of Union of Great Britain), which represents some RA employees, said it was “deeply distressed” by the planned cuts, which come less than five years after the organisation consulted on redundancies during the pandemic, criticising what it called the RA’s “reckless mismanagement”.

“We call on management to halt the process immediately and engage with staff on viable alternatives,” said IWGB. “If they refuse, workers are prepared to take swift action to defend jobs and livelihoods.”

The RA, which does not receive direct government funding, has been struggling to return to pre-pandemic levels of income.

The organisation’s accounts for the last financial year annual reveal it is facing a “material reduction” in income from exhibition admission and other on-site sources “for at least the next three years” together with “a smaller annual donation from the Friends of the Royal Academy”.

‘Significant impact’ on RA staff

The RA reports that net expenditure for 2023/2024 from ongoing activities, before interest, depreciation, and amortisation, was £2.3m, while net income was £1.5m, “significantly short of the £5m target”.

“The 2024/25 budget, before taking significant measures, forecasts a further deterioration with adjusted net expenditure of £3.3m,” the report continues.

“Before taking significant measures, the 2024/2025 budget forecasts a net loss of £7.1m.

“If the RA took no action to address this, then in the financial year ending 31 August 2026, the RA would breach its available credit facilities and would need to place a significant call on the £10.3m in unrestricted funds held by the Royal Academy Trust (a separate charity).

“The scale of this challenge is having, and will continue to have, a significant impact on the RA’s staff and operations. Resources are being dedicated to transforming the organisation and planning is underway to deliver this.”