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March 7, 2008
Getty Trust CEO: Expect staff reductions
***UPDATED at 11:10am EST.***
MANscoop: J. Paul Getty Trust CEO James Wood sent out a one-page memo to Getty staff yesterday acknowledging that a reduction of Getty staff is "likely." The Getty Trust is the largest arts philanthropy in the U.S. and the third-largest foundation overall, according to Foundation Center.
Getty Trust spokesman Ron Hartwig told MAN that expected staff reductions are a result of Wood, who has been with the Getty for just over a year, bringing the Getty in line with his priorities and are unrelated to turmoil in world financial markets. The Getty's most recent annual report indicates that the Trust's endowment grew from $4.3 billion in 2003 to $5.6 billion in 2006.
"This is more about long-term planning," Hartwig said, adding that the planning process began last July, five months after Wood started as CEO. "We've looked at everything: Is our structure right? Is the management team right? Are the programs we're doing correct? Is our presence in LA correct? We've examined all the things one might consider when you go through a strategic planning process, including how do we ensure the long-term success of the Getty knowing that expenses continue to increase. While we experience increases in the endowment, [we] still need to plan."
MAN acquired a copy of Wood's memo, which includes this passage:
"Everyone should assume that we will find things that need to change. It is premature to say right now what those changes might be, and what impact they might have on our current levels of funding and staffing, but there will be an impact. Indeed, there will likely be some reduction in our staffing levels [emphasis added], and some initiatives may be cancelled or changed as we work to prioritize the Getty's many activities. We will be a stronger institution in the future by making decisions now to do a bit less even better."
Wood acknowledges that the memo is his response to a swirl of rumors that have enveloped the Getty for the last week or so as the Trust and its board go through the budgeting process. In the memo Wood promises to announce the "results" of that process by the end of June. The memo does not say whether staff reductions will be limited to the elimination of unfilled positions or whether the Getty is considering layoffs.
The full memo is after the jump. More to come...
Date: March 6, 2008
To: All Getty Staff
From: Jim Wood
Subject: J. Paul Getty Trust Budget Process
I want to provide you with a further update on the work going on across the Getty in connection with the development of next year's budget. As I've reported in earlier all staff memos, coming on the heels of the strategic planning process that involved our leadership team and the Board of Trustees, for the last several weeks we have been working to develop a long term strategic approach to budgeting that will ensure a successful future for the Getty Trust and its four programs.
You all know that the Getty has only a single primary source of funding, and while the income derived from our endowment is significant, and with careful management will continue to increase, the Getty's leadership team has the major responsibility of making sure over the longterm that growing expenses do not overtake our ability to fund programming priorities that are key to achieving the Getty's mission. These include collecting and exhibiting works of art, education, research and scholarship, conservation and philanthropy, here and around the world, as well as meeting the significant costs associated with maintaining our two campuses for the public.
As this year's budgeting process moves forward, each Trust department and each of the Getty's programs will review their operations to prioritize activities and search for ways to improve the way they work. The ultimate goal of this process is to make sure all areas that are central to the Getty's mission are efficient in their operation and appropriately funded now and in the years ahead.
Everyone should assume that we will find things that need to change. It is premature to say right now what those changes might be, and what impact they might have on our current levels of funding and staffing, but there will be an impact. Indeed, there will likely be some reduction in our staffing levels, and some initiatives may be cancelled or changed as we work to prioritize the Getty's many activities. We will be a stronger institution in the future by making decisions now to do a bit less even better.
I know there has been discussion about this effort throughout the Getty. The process underway is complicated, it will require a great deal of work, and I know that you are likely to have questions along the way. My objective is to provide you with timely information as the process moves forward. Dealing with uncertainty is difficult, so we are making every effort to move this process ahead as quickly as possible and announce results before the end of June.
Posted March 7, 2008 9:25 AM
