Sundance, Kimball Art Center lay off staffers as cultural organizations suffer financially
The Kimball Art Center and the Sundance Institute, not-for-profits that are seen as two of the leading cultural organizations in Park City, have each suffered layoffs recently as they attempt to address the economic havoc wrought by the novel coronavirus.
Sundance, which is headquartered in Los Angeles and also has a significant year-round staff presence in Park City, outlined the downsizing in a memo to staffers on July 1 while the leader of the Kimball Art Center acknowledged the staff losses in a Monday interview.
Aldy Milliken, the executive director of the Kimball Art Center, said approximately 25% of the full-time staffers have been laid off or furloughed since late March. He said the moves were required as the organization emphasizes core values of education, exhibits and support of artists. He said difficult financial decisions needed to be made. Milliken declined to discuss severance for those who were laid off but said the Kimball Art Center attempted to honor the staffers’ work within the realities of the financial situation.
“It’s responding to a really difficult financial landscape,” he said.
The Kimball Art Center laid off or furloughed the staffers at a moment when the leadership is attempting to address the financials amid what were initial concepts for a scaled-back Park City Kimball Arts Festival and then the cancellation of the summertime event. The festival, held on Main Street annually, was scrapped for 2020 in mid-June. The Kimball Art Center and City Hall were in discussions about holding the event with restrictions designed to combat the spread of the illness when the organization instead opted for a cancellation.
Milliken said the revenues from the festival represent a “major part of our operating budget” as he addressed the layoffs and furloughs. Some of the Kimball Art Center staffers who were laid off were assigned specifically to festival-related duties, he said. Milliken also said he wants to, over time, diversify Kimball Art Center revenues so the organization is not as reliant on the arts festival in budgeting.
Sundance, meanwhile, said it is cutting 24 positions throughout the organization. The losses occurred in the Park City location as well as offices in Los Angeles and New York City, but it was not clear how many were based locally. Sundance also said some staffers who remain will have hours reduced and the budget for seasonal staff will be reduced significantly.
One of the moves described by Sundance involves a restructuring of lab programs — New Frontier, Film Music and Theater — into a single one.
Sundance’s executive director, Keri Putnam, said in a memo the staffers whose positions were cut received “severance packages as generous as we can afford.” The severance included accrued vacation, at least eight weeks of pay, health insurance covered by Sundance until Aug. 31, a laptop computer provided by Sundance and three months of outplacement services.
The layoffs occurred as the organization is attempting to craft plans for the 2021 edition of the Sundance Film Festival, taking into account the impacts of the coronavirus and social distancing. The concept involves a Park City base and screenings in cinemas across the U.S. and in Mexico City in addition to a significant online presence.
Below is the full memo from Sundance Institute Executive Director Keri Putnam to Sundance employees:
A Difficult Step On Our Path Forward
I’m writing today with difficult news. I am deeply sorry to let you know that, in light of the financial impact of the pandemic, we have no choice but to reduce the size of our team. I had hoped not to have to send this email, and these are hard words for me to write, but I know they are far more painful for you to hear.
We have tried to be as candid as possible with you these last several months about our financial picture and the evolution of our artist support programs and Festival, but I want to recap how we got here.
Because we were able to hold the 2020 Festival in January as planned, we did not face the immediate level of devastation of many nonprofit arts organizations this year. But, as you know, the pandemic had a meaningful impact on our projected revenue. In response, we made executive pay cuts, made across-the-board reductions to all departmental budgets, and moved in-person events to digital platforms. With these savings measures and approval by the Board to run a deficit, we were able to retain our entire full time staff and support our full cohort of artists across programs through this current fiscal year. The upcoming fiscal year beginning in September will be much harder.
Both contributions and Festival ticket sale revenue will be seriously impacted by the pandemic and its economic fallout, and therefore we will be facing significantly reduced income for the coming year. We have been working in earnest to find solutions that might better this outlook, but have now recognized that we must take additional steps to ensure a sustainable future for the Institute.
Gathering in live spaces will always be critical to our values and work, but in-person events, including the Festival, will be different for at least the next year. From streamlining programs to moving in-person events to a digital format, we have decided we must restructure and realign our teams to meet our new reality.
Over the last several months, the leadership team and the Board have been meeting to define the ways we must adapt our work to effectively deliver on our mission of supporting independent artists now, and going forward. This included assessing the new capabilities required for our future and aligning a decision making process to our values, including maintaining our commitment to diversity, equity, and inclusion.
The cuts and changes will affect all areas of our work. I want to share a few key elements of our restructure here:
We are restructuring our longstanding Theater, Film Music, and New Frontier Lab Programs to create a single interdisciplinary program to support storytellers in theater, performance, emerging media and cross media projects. With this consolidated program, we hope to seed a flourishing of new works within and across forms and to honor our history and commitment to supporting independent artists in these disciplines. More details will follow on how this will function and sit in the organization.
Acknowledging that the way we physically produce our Festival and Labs will shift as we elevate digital platforms and partner-led collaborations, we are consolidating our Festival and Lab operations teams.
We will continue to invest in building capacity on our digital team to support the global growth of Sundance Co//ab and to build a robust Festival platform that will complement our live event.
We will be reducing the organization by 24 positions across our Los Angeles, New York, and Park City offices. Additionally, some staff members will transition to reduced work schedules, and seasonal staff budgets will be greatly reduced from their usual levels. All impacted employees will hear directly from their managers by 1:30pm PT / 2:30pm MT / 4:30pm ET today. Those remaining with the Institute will receive an invitation for an all-staff meeting later this afternoon.
As we approached the reality of losing deeply valued colleagues, we were driven by the goal of supporting their transition to the best of our ability with severance packages as generous as we can afford. Packages will include accrued vacation, one week pay for each year worked with a minimum of 8 weeks to all departing employees, and company covered health care insurance through the end of August. Each person will be able to keep a company-issued laptop computer, and for three months we will be offering outplacement services to provide career, resume, and interview coaching for all departing staff from experienced professional coaches.
Even those not departing the Institute will be asked to shoulder some of the financial burden to keep us financially sustainable. The salary reduction that the leadership team and I took in March will continue and deepen for FY21, and unfortunately it is likely that tiered salary reductions for staff at higher compensation levels, and changes to all of our benefits will also be necessary. I understand the real impact of these measures for remaining staff, and we will continue to work to limit them as much as possible. Any changes will become effective on August 31, and we commit to finalizing these details and sharing them with you by August 1.
Sundance Institute is a wonderful place not only because of the caliber of art we support, but because of the people who define our culture. Every team member we are losing is someone who cares deeply about our mission, and has contributed meaningfully to our work and to the character of our organization. As hard as these last few months have been, they have also been some of the most extraordinary in my ten years at this organization. Today’s news is even more painful after having seen firsthand the ways in which every one of you stepped up to support one another emotionally and meet the new demands of this extraordinary year.
Nearly four decades ago, Sundance Institute was founded on the belief that independent artists are essential for a thriving society. Their work brings beauty, meaning, humanity, and truth. It sparks dialogue, and brings us together even in this time of isolation. Our commitment to these principles has not changed; this is still our North Star and I’m confident that our redesigned organization will be sustainable and vital. If ever there were a moment for us to stay grounded in the purpose of our work, it’s now.
Words cannot express my profound sadness to have to deliver this news, or my gratitude to each and every one of you.
With deep appreciation and respect,
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