In 2022, Sotheby's announced significant layoffs, affecting around 3% of its global workforce. The company cited the need to adapt to changing market conditions.
Sotheby's reported a revenue decline of 12% in 2022 compared to the previous year. This decline was largely due to a decrease in sales from its auction business.
The layoffs and financial struggles at Sotheby's have raised concerns about the future of the company. Sotheby's has been a major player in the art market for over 260 years.
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Sotheby's cuts 100 staff after weak auction season
Sotheby's has laid off around 100 employees, including junior staffers, backroom workers, and specialists in less busy departments.
The layoffs followed a series of poor auction sales, with Sotheby's November marquee sales yielding a total of just $533.1 million, a major step down from the $1.2 billion collected last year during the same period.
Sotheby's had already cut 50 staffers from its London office in May, and signs suggest that more layoffs are on the way.
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The auction house's financial standing has been in question for months, with a leaked report in September showing an 88 percent decline in core earnings and a 25 percent drop in auction sales in the first half of 2024.
Sotheby's owner, French telecom magnate Patrick Drahi, is reportedly $60 billion in debt, and his business empire is in debt to the tune of about $60 billion.
To shore up its finances, Sotheby's received a $1 billion investment from Abu Dhabi's sovereign wealth fund and investment company, ADQ.
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Financial Performance
Sotheby's has had a tough year financially, with its November marquee sales yielding a total of just $533.1 million, a major step down from last year's $1.2 billion.
The auction house's poor sales are part of a larger trend in the art market, which has seen a fluctuating year with slow sales in the latter half.
Sotheby's core earnings have taken a huge hit, down by a staggering 88% according to a Financial Times report.
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A document sent to investors ahead of an investment from Abu Dhabi's wealth fund also reveals a 25% drop in auction sales, which is a significant decline.
Sotheby's is currently struggling with a substantial amount of debt, totaling $1.8 billion, and its owner Patrick Drahi is $60 billion in debt.
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