Troubled Finnish National Opera considering staff layoffs

print this

Following the announcement of very poor financial results for 2005, the Finnish National Opera is to adopt a strategic recovery plan. At a recent briefing, the staff were told that the recovery programme may involve even some layoffs while attempts are made to improve the Opera's financial standing.
      "We informed the staff already now, as we do not wish the potential layoffs to come as a surprise to anyone", reports General Director Erkki Korhonen.
      "However, they are only one alternative, and certainly not any real solution to our permanent problems", he adds.
      Financial Manager Marjaana Niemi and the Orchestra Committee Chair, cellist Patrick Stenström, both confirmed that the issue of potential layoffs has been brought up, even though no decisions have been made as yet.
     
Risto Kivelä of the Ministry of Education notes that the management of the Opera has been asked to provide the ministry with a recovery plan that covers all alternatives. Potential layoffs would be part of its cost-saving targets.
      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, over the summer.
      As a consequence, both the spring and autumn seasons of the Opera will be shorter than normal in 2007.
     
Following the losses incurred over the past year of EUR 1.8 million, the Board of the National Opera expects to receive a detailed estimate of the revenues and costs for the current year, as well as potential cost-saving targets, no later than April 26th.
      "The state and the Opera have a five-year deal that is in force and guaranteeing state support until 2009. During this period the financial standing of the Opera should be balanced. However, owing to last year's sizeable shortfall, cost-saving targets have to be considered as well", Kivelä stresses.
      While costs have to be cut back, revenues also have to be increased. In 2005, audience numbers were down compared with the previous year. The Opera has to bring the public back to performances.
     
With respect to revenue growth, Erkki Korhonen mentions for example two matinee performances of The Magic Flute that have now been added to the programme. The additional performances have been scheduled for April 8th and 29th.


Previously in HS International Edition:
  Ministry of Education is disappointed in Finnish National Opera (24.3.2006)
  Ministry believes National Opera can weather its losses (23.12.2005)

Links:
  Finnish National Opera

Helsingin Sanomat