Sotheby’s begins downsizing 
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Last Friday, after the auction season on the art market came to an end, the Sotheby’s auction house invited its employees to think about dismissing on their own, with payment of some monetary compensation. This measure is forced and is designed to reduce the organization’s costs.
“Of course, I understand that announcing a cost-cutting program right after two weeks of dazzling sales was a bit of an unexpected step,” reads an email from Tad Smith, Sotheby’s chief executive, who got home Friday night, reports Bloomberg News.
The price of shares in the auction house has been steadily declining over the past six months. On Monday, the company released a third-quarter performance report, which shows that the sales commission was only $ 56 million, 12% lower than the same period last year.
Fears were also caused by the fact that Sotheby’s guaranteed 515 million dollars to the family of Alfred Taubman (A. Alfred Taubman), the former chairman of the auction house, whose art collection was the subject of the latest sales cycle. However, having generated more than $ 1 billion during the fall session, Sotheby’s was able to break even this obligation.
Tad Smith in his e-mail appeals to the analysis of summer sales, when the auction house did not work as efficiently as it could. “Our company will benefit from a lower level and flexible cost structure,” writes Smith, adding that house management provides employees with an “attractive economic opportunity” to resign voluntarily before starting the process of downsizing.
Anna Sidorova © Gallerix.ru
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