The Brooklyn Museum in New York has announced a major cost-cutting initiative in response to a projected $10 million budget deficit. To mitigate financial losses expected by June, the museum will lay off more than 40 employees, representing 10 to 13% of its workforce, reduce the number of annual exhibitions, and cancel weeknight events with low attendance or inconsistent funding.
Rising Operational Costs and Financial Deficit
On February 6, Museum Director Anne Pasternak addressed staff in a letter, stating that the museum was “experiencing strong headwinds: inflation has dramatically impacted our operating budget, adding millions of dollars to everyday costs and outpacing funding.” She also pointed out that the slow post-pandemic recovery in visitor numbers has further worsened the financial situation.
In response to these financial challenges, the museum plans to cut senior leadership salaries by 10 to 20%, reduce the number of annual exhibitions from 12 to 9, and discontinue weeknight events that lack stable funding or sufficient attendance. Pasternak stated, “More simply put, our expenses have grown more rapidly than our revenue. This requires changes to our program, operations, and the size of our team, to help set the course for longer-term sustainability.”
Union Backlash and Uncertain Negotiations
The layoffs will affect multiple departments, including both union and non-union positions. In response, Wilson Souffrant, president of Local 1502, a division of the American Federation of State, County, and Municipal Employees (AFSCME), criticized the decision, stating, “We are dismayed that the museum would choose to balance the budget on the backs of union members.”
On February 7, the union issued a cease-and-desist order to prevent the museum from proceeding with layoffs without prior negotiations. While Pasternak affirmed the museum’s commitment to negotiating with the union as stipulated in its contract, Local 1502 has insisted that the notice period was insufficient, leaving the outcome of negotiations uncertain.
Operational Challenges and Revenue Model Limitations
In recent years, the Brooklyn Museum has sought to recover declining visitor numbers by hosting high-profile exhibitions. In 2023, the museum showcased works from filmmaker Spike Lee, musicians Alicia Keys & Swizz Beatz, and Paul McCartney, among others. However, despite these efforts, the museum’s total employee compensation has increased by $17 million over the past decade, and expenses continue to outstrip revenue.
Additionally, the museum’s endowment stood at $175.2 million as of June 2023, a figure significantly smaller than institutions like MoMA, which holds approximately $1.75 billion. Moreover, since more than half of the museum’s visitors are local residents benefiting from a “pay-what-you-wish” admission policy, the potential for increasing earned revenue remains limited.
The Brooklyn Museum has also become a focal point for pro-Palestinian protests. Last spring, 34 demonstrators were arrested during a protest on museum grounds, where security guards were assaulted, and artworks were damaged. The incident raised concerns over security management within the museum.
Following this, Pasternak’s home, along with the residences of other museum executives, was vandalized by activists. Several individuals were later charged with hate crimes, including acts of criminal mischief and terroristic threats.
Despite these financial challenges, the museum has confirmed that the planned 2026 renovation project for its African Art Collection will proceed as scheduled.
Pasternak concluded, “Wages comprise our largest operational line item — approximately 70% of our operating budget — and a financial realignment sadly requires reductions in our team.”
As the museum navigates its financial crisis, it faces the dual challenge of maintaining its cultural significance while striving for economic sustainability.
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