Coronavirus: Royal Exchange forced to put 65% of staff at risk of redundancy

The Royal Exchange Theatre in Manchester has announced it could have to make up to 65% of its permanent staff redundant, claiming it has been left with no other choice but to scale back the organisation.

The theatre said the "monumental" impact of Covid-19 on its business means it has now entered into redundancy consultations with its workforce in order to survive the crisis.

"From the government’s recent announcements there is nothing on the table which gives us confidence or clarity to be able to restart any activities in the immediate future.

"As a direct result of this, and the dramatic loss of income associated with it, we have no other choice than to scale back the organisation and reduce our overheads in order to survive," it said.

It warned that the consultation period could end with up to 65% of permanent roles being made redundant, but said job losses were "the last resort protecting the future of the Royal Exchange Theatre".

Joint artistic director Bryony Shanahan described the decision as "heartbreaking".

"Our staff are dedicated, talented, loyal and they don’t deserve this – and neither do the thousands of people in our industry who are facing job loss and uncertainty. It is an awful time for us all, and it’s also hugely frustrating that government support simply hasn’t reached us in time, despite clear warning signals and cries for help.

"Access to culture for all should not be a luxury but a right, and so we must value it as such as we heal and move forward from this time."

The pandemic has seen the Royal Exchange closed to audiences since March and it said there is no prospect of a financially viable reopening while social distancing remains a requirement.

Joint artistic director Roy Alexander Weise added: "The only way through this tremendously difficult time is to have unwavering optimism; keeping our eyes firmly on the goal of building again a vibrant hub of creativity and connection for Greater Manchester.

"This catastrophe sadly forces us to change drastically to brace the world’s uncertainty but we look further ahead with hope to becoming a theatre which benefits more people than ever before, brings our community relationships into sharper focus, and helps us to employ and sustain more talent in the future."

Theatres across the UK have been forced to begin redundancy consultations with their workforces in order to survive the crisis, with many criticising the government for failing to support theatres in time to avoid such drastic action.

Other organisations that have confirmed they are already moving forward with redundancies include Norwich Theatre Royal, Theatre Royal Plymouth, Birmingham Hippodrome and the Royal Lyceum Theatre in Edinburgh, as well as major operators such as Ambassador Theatre Group, Delfont Mackintosh and Nimax.