Sotheby’s, the renowned auction house, is laying off over 100 employees as part of a restructuring effort following a challenging year for the art market.
The move comes after a $1 billion cash infusion from its owner, Patrick Drahi, and Abu Dhabi’s sovereign wealth fund, ADQ, aimed at stabilizing the company’s finances.
Layoffs and Restructuring
The layoffs are set to be completed by year’s end and will impact employees across various departments.
This includes long-tenured art specialists to junior and mid-level staff in roles such as client strategy, technology, and art evaluations.
Some seasoned salespeople may transition into advisory positions, and regional offices, including Moscow, are closing.
A Sotheby’s spokeswoman explained:
“We’ve taken a careful look at our business and staffing levels to perform well and grow going forward.”
The cuts come after the auction house spent heavily on global expansions, including a $100 million transformation of the Breuer building into its new New York headquarters and a lavish new hub in Hong Kong.
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A Struggling Art Market
The layoffs underscore ongoing difficulties in the global art market. Auction sales fell by nearly 25 percent across major auction houses in the first half of the year, forcing many galleries to scale back operations.
Despite some high-profile sales, including Maurizio Cattelan’s “Comedian” banana sculpture fetching $6.2 million in November, the market’s recovery remains uncertain.
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Employee Reactions and Handling of Layoffs
The layoffs have caused unease among Sotheby’s staff, particularly given the recent $1 billion infusion, which was largely used to pay down debt.
Employees reportedly learned of the cuts through HR-led meetings, with some only realizing what was happening after seeing colleagues visibly upset.
CEO Charles Stewart, who was in Abu Dhabi meeting with shareholders during the initial layoffs, has since returned to New York but is not directly engaging with staff regarding the decisions.
Industry Comparisons: Rivals Hold Steady
While Sotheby’s implements its restructuring, competitors such as Christie’s and Phillips have avoided significant layoffs.
- Christie’s stated it has “no staffing changes of note planned,” and recently announced its acquisition of Gooding & Company, a collectible car auctioneer.
- Phillips plans to cut or reshuffle 5-6 roles but has no broader reductions in the works.
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Looking Ahead
Sotheby’s restructuring highlights the broader challenges facing the art market in 2023.
While the auction house positions itself for future growth with global expansions and operational streamlining, the layoffs underscore the fragility of the market’s recovery and the balancing act between cutting costs and maintaining its storied reputation.
