The Royal Shakespeare Company has announced a major restructuring plan, including significant job losses, as it grapples with what its leadership describes as a 'perilous' financial situation. The renowned arts institution plans to reduce its workforce by 11%, a move it says is essential to become 'match fit' for future challenges.
Financial Pressures Force Drastic Measures
Daniel Evans, the RSC's joint artistic director, revealed the plans could save the organisation £2.8 million a year. This is part of an effort to address a projected shortfall of between £5 million and £6 million. Evans explained that a combination of factors has created this crisis, including a real-terms cut in funding from Arts Council England, the ongoing cost of living crisis, and dramatically rising material costs.
He highlighted the specific impact of global events, noting that the war in Ukraine has caused timber prices to soar, which severely affects the RSC as it builds its own sets in Stratford-upon-Avon. Furthermore, the company's commitment to accessibility, such as offering 25,000 tickets at £25, has made balancing the books increasingly difficult.
Proposed Changes and Staff Impact
Under the proposals, which were first reported by the Stage, the company's specialist costume departments will be merged. Remaining workers in these areas may be forced to reapply for their own jobs, potentially for less pay and fewer hours. The 11% reduction in headcount will be achieved through a combination of voluntary redundancies and compulsory job losses.
The RSC is currently in a consultation period with staff and unions, which is set to conclude in January 2026. This follows an announcement in September where half of its 835 employees were invited to apply for voluntary redundancy as part of 'urgent' savings measures. This represents the largest redundancy programme at the RSC since the pandemic cuts of 2020.
A Sector-Wide Challenge
In a statement, the RSC said it needs to become more 'agile, sustainable and resilient'. It admitted that the £2.8m savings from job cuts will not alone close the financial gap, meaning further income growth and efficiency drives will be necessary in the coming years.
The arts workers union Bectu acknowledged the financial challenges. Philippa Childs, head of Bectu, stated: 'Bectu recognises the financial challenges the RSC is currently facing – it is not the only company in the industry dealing with these issues.' The union is supporting its members through the consultation process.
Evans also pointed to a tougher environment for fundraising, stating that getting philanthropic donations and corporate sponsorship has become more difficult because 'there's just less money to go around.' Last year, the company raised £6.6m in donations.
