Met to layoff two dozen employees, cut exec salaries and postpone shows
The Metropolitan Opera in New York City is facing financial challenges, leading to a series of cutbacks and restructuring. The opera’s general manager, Peter Gelb, recently announced layoffs, salary reductions for high-ranking executives, and other cost-saving measures in response to a funding deal with Saudi Arabia that has not materialized as expected.
The $200 million deal with Saudi Arabia, which was struck in September, involved the Met performing at the Royal Diriyah Opera House near Riyadh for three weeks each winter over the next eight years. However, the Middle Eastern country has yet to fulfill its end of the agreement, leaving the opera in a difficult financial position.
As a result, the Met will be laying off 22 administrative staff members and implementing salary cuts for 35 executives earning over $150,000 a year. Even Gelb himself will see a reduction in his nearly $1.4 million annual salary. The opera’s upcoming season will also be scaled back from 18 productions to 17, with the postponement of a new production of Mussorgsky’s “Khovanshchina.”
In addition to personnel and production changes, the Met is considering selling two Chagall murals valued at $55 million that currently hang in the building’s Grand Tier. The opera house may also sell naming rights to its theater in Lincoln Center and lease the space to pop artists on off-nights to generate revenue.
Despite these challenges, Gelb remains optimistic about the future of the Met and is exploring new business models to ensure its financial sustainability. The company aims to save $25 million this year and the following year through these cost-cutting measures.
The Met has faced financial struggles since the onset of the COVID-19 pandemic, during which it depleted $120 million from its endowment to stay afloat. Prior to the pandemic, the opera typically produced 25 productions per season.
Overall, the Met is navigating a difficult financial landscape but remains committed to its mission of bringing world-class opera to audiences in New York City and beyond. The organization’s resilience and determination to adapt to changing circumstances will be crucial in securing its future success in the years to come.
