The Solomon R. Guggenheim Museum announced on December 4 that it laid off 10 workers to reduce its operating deficit caused by inflation strains.

“Like many institutions, rising costs and inflation have strained our budget, and our visitation is climbing towards, but not yet at pre-pandemic levels. To be fiscally responsible, the museum has made the very difficult decision to reduce staffing levels. This was not a decision made lightly,” Sara Fox, a museum spokeswoman, said in an emailed statement.

She added that the museum has taken steps such as “cutting costs wherever feasible” but that, “regrettably, the museum will not have the ability to support our previous number of staff.”

“These colleagues have shown dedication and commitment to the museum and we thank them for their hard work,” Fox said. “These moves will better position the Guggenheim to be a future-ready, sustainable museum while continuing to uphold our mission.”

The museum layoffs include two deputy directors and workers in the visitor services and communications departments, or about 2.5 percent of all employees, according to The New York Times. However, Fox said “we have not disclosed the list of positions that the NYT reported.”

The Guggenheim’s financial statements show that, at the end of 2022, the museum had nearly $23 million in cash and total assets of about $232 million, down from $30 million and $240 million respectively at the end of 2021. Though the numbers show a decline from 2021, the museum had just $20 million in cash in 2020 and $12 million in cash in 2019.

But perhaps one of the biggest warning signs in the financial statements is the decrease in net assets without donor restrictions (funds and property that can be used by the museum’s board of directors at its discretion) from $10.8 million at the beginning of the year to nearly $4 million at the end of the year.

Meanwhile, the Guggenheim Foundation’s tax form for 2022 shows that the museum paid $31 million in salaries and other compensation to its employees. Former museum director Richard Armstrong made $819,010 in reportable compensation with another $771,418 from other compensation—a total of more than $1.5 million.

Armstrong retired last summer and the museum announced last month that Mariët Westermann has been tapped to replace him. It was not immediately clear what her compensation will be when she begins the role in June.

Another sign of the museum’s current financial situation was shown this summer when the Guggenheim raised its prices for general admission from $25 to $30—a 20 percent price hike.

“The new rates align with those of the museum community in New York City and will help support the operational costs of the museum,” Fox told Artnet News at the time. “The additional revenue will allow the Guggenheim to continue providing accessible programming, dynamic exhibitions, and an enjoyable visitor experience.”

And it’s not just New York museums facing economic upheaval. In October, the Dallas Museum of Art laid off 20 workers, or about eight percent of its workforce, ahead of a major planned renovation budgeted at $150 to $175 million. The DMA had said it did not have a deficit for the its fiscal year ending in June but hoped to avoid future deficits and created sustainable financial conditions for the future.

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