Sotheby’s, one of the world’s leading auction houses, has announced a series of layoffs this week, affecting more than 100 employees globally. This amounts to roughly 6 percent of its 1,800-person workforce. The decision comes in the wake of a shrinking art market, which has seen a decline in auction revenue due to various factors such as rising interest rates, a volatile Chinese economy, and a limited supply of top-quality artworks.
The company, which recently received a $1 billion cash infusion from Abu Dhabi’s sovereign wealth fund and investment company, ADQ, has stated that the layoffs are part of an effort to improve its financial situation and ensure future growth. According to Karina Sokolovsky, a Sotheby’s spokeswoman, the company has carefully evaluated its business and staffing levels in light of the challenges faced by the market this year.
The layoffs have affected employees at all levels, including junior staff, client services executives, back-office support staff, and long-serving specialists. Sotheby’s has also closed regional offices in Moscow and Bangkok. However, no previously scheduled sales have been canceled as a result of the cutbacks.
The art market has been struggling for the past two years, with Sotheby’s reporting a 25 percent decline in auction sales in the first half of this year, and its rival, Christie’s, reporting a 22 percent decline. Last month, Sotheby’s major art auctions in New York saw a more than 50 percent drop in sales compared to the same period in 2023.
The layoffs have been met with mixed reactions, with some employees being notified last week and others still in negotiations for transition into advisory roles. The company’s chief executive, Charles F. Stewart, has also faced criticism for posting images of himself on Instagram from his recent trip to Abu Dhabi, while the layoffs were taking place.
The impact of these layoffs on the company’s future remains to be seen, but it is clear that Sotheby’s is looking to diversify its business and expand its luxury brand and real estate in New York, Paris, and Hong Kong. As the art market continues to face challenges, it is likely that we will see more changes and adjustments from major auction houses in the coming months.