London — The Royal Shakespeare Company has launched an urgent voluntary redundancy programme as it confronts a projected shortfall of between £5 million and £6 million.
Some 420 of the RSC’s 835 full-time staff have been invited to apply for voluntary redundancy in a scheme running until 5 October.
Management cited a combination of factors behind the deficit, including the cost of living crisis, higher staffing costs since the pandemic, and a decline in public investment.
It has also begun to repay a £20 million loan, a financial obligation that began earlier this year and has affected liquidity, according to the company’s latest annual report.
Alongside the redundancy plan, the RSC said it is pursuing operational efficiencies and seeking additional income to support its core mission of creating theatre and learning opportunities.
Matilda, the West End show that has previously contributed about £30 million to the company, had helped generate revenue but income from the production has slowed in the past year, the leadership said.
Executive director Andrew Leveson and co-artistic directors Daniel Evans and Tamara Harvey said the organisation must be more agile, resilient and sustainable if it is to thrive, and that the current structure sometimes impedes ambition.
There is duplication across the organisation and the leadership said it is reviewing costs and workflows to reduce overhead and improve overall efficiency.
Vacancies had been held for several months; the RSC indicated that it will continue to avoid voluntary redundancies where possible, but if uptake is insufficient, a compulsory scheme could be launched later in autumn.
The move comes as the arts sector in the UK faces broader funding pressures, with rising costs and tighter public investment affecting theatres’ ability to maintain staffing and programming. Officials stressed that savings would be reinvested in new theatre projects and learning initiatives, the company’s founding purpose.