The Vancouver Art Gallery (VAG) is facing financial difficulties and has announced it will lay off a significant number of staff members. The gallery confirmed on Tuesday that it is reducing its workforce to ensure long-term sustainability. The VAG employs 129 full-time staff, and according to CUPE Local 15 president Warren Williams, 29 of the 90 unionized staff members will be affected by the layoffs.
The cuts will impact every department and all levels of the organization. Jon Stovell, chair of the VAG’s board of trustees, attributed the economic struggles to not regaining pre-COVID attendance levels and the challenges faced by the art gallery sector across North America and Europe. “There’s changes in how traditional visual arts organizations are funded,” Stovell said.
The gallery reported a $2.85 million loss in operating revenue during the 2023-24 fiscal year and anticipates a continued deficit for 2024-25. To manage its financial troubles, the VAG scrapped plans for a new expansive gallery designed by the Swiss firm Herzog and de Meuron.
Vancouver gallery’s financial challenges
The project’s estimated cost had ballooned from $350 million to $600 million before it was cancelled, after $63-64 million had already been spent on preparatory costs. The VAG’s restaurant venture also contributed to its financial woes, with the gallery’s 2023-24 report recording an accumulated loss of $2,459,727 in operating a bistro. The VAG has since leased out the bistro.
Despite these challenges, the gallery’s building fund remains significant at $98,663,735, and it has an additional acquisition fund of $1,772,745. However, the drop in admissions revenue from $3,152,966 in the last pre-COVID year (2018-19) to $2,731,368 in 2023-24 highlights ongoing financial pressures. The gallery aims for a balanced budget by 2025-26 and is making necessary changes to ensure longevity while navigating through a hyper-inflationary period that has increased costs across the board.
Union representatives have expressed concerns and are in discussions with the gallery’s leadership to mitigate the impact on workers and ensure support during this transition. The larger art community in Vancouver is also paying close attention to the developments, given the gallery’s prominence and influence in the region.
