A news release today blamed the layoffs on an anticipated drop in income due to the recession. The museum declined to make anyone from it's management team available to elaborate, but this past June, CMA director Timothy Rub spoke with 90.3 about the impact the current economy has had on Museum finances.
TIMOTHY RUB: Our endowment peaked at about 830 million dollars, just about two years ago. It is now down to about 550 million dollars.
Most of Northeast Ohio's major cultural institutions rely substantially on endowments to finance their operations --- it's money that's invested so that the interest and earnings can be tapped for day-to-day expenses as well as capital improvements. But, the economic downturn has severely undercut those investments. In it's prepared statement, the Cleveland museum said managers have not filled job vacancies in recent months to minimize the need for layoffs.
This belt tightening comes as the museum is in the midst of a multi-million-dollar expansion program. Trustees have said that they will decide before the end of the year if that renovation will continue. They also face the prospect of hiring a new director --- Timothy Rub is due to depart for a new job as the head of Philadelphia's Museum of Art, next month.
