Board of National Opera to decide on cost-cutting measures this month

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While attempting to improve its financial standing, the Finnish National Opera may temporarily lay off all its staff next year.
      Potential layoffs are one alternative in the recovery programme that is currently being compiled under the direction of Administrative Director Pekka Kauranen, following the request by the Board of the National Opera to receive a detailed estimate of the revenues and costs for the current year, as well as potential cost-saving targets, by April 26th. A decision on potential savings is to be made at the Board meeting on the same day.
     
In order to make up their losses of EUR 1.8 million over the past year, the Opera is to adopt a strategic recovery plan involving also savings.
      YLE's TV news reported on Wednesday that the National Opera is to lay off all its staff, while according to Director Kauranen, no such decision has been made as yet.
      "Decisions on potential cost-cutting measures will not be made until at the Board meeting", he notes.
      "We will adopt all possible means, probably even layoffs", he adds. "However, the recovery plan does not include dismissals at this point."
      "The staff of the Opera has long been just below 600. In the future, we will consider carefully whether or not we will need a replacement when someone leaves", Kauranen reports.
     
According to Kauranen, the layoff period could be timed to coincide with the planned renovation work in 2007, when the Opera House on Mannerheimintie will in any event be closed for four months, from May to the beginning of the autumn.
      As a consequence, both the spring and autumn seasons of the Opera will be shorter than normal in 2007. This will, of course, also be reflected on the revenue side.
     
The National Opera is to seek further savings even by joint productions and cheaper stagings, according to YLE's news.
      The Administrative Director does not believe, however, that the number of premières would be reduced.
      "We will have seven productions a year also in the future - four operas and three ballets - and a total of around 200 performances annually", Kauranen concludes.


Previously in HS International Edition:
  Troubled Finnish National Opera considering staff layoffs (29.3.2006)

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