The Royal Court in London has confirmed it will begin "reassessing staff teams", in a process understood to include potential redundancies.
The historic venue said it was "entering into a process" designed to secure "the long-term future of the organisation", after its most recent accounts revealed it was facing a considerable financial pinch.
In a statement provided to The Stage, the new-writing theatre admitted it had, like many of its peers, been "heavily impacted by a challenging funding climate, the continued impact of the pandemic and cost-of-living crisis".
Citing rising costs and high rates of inflation, which have seen "drastic uplifts in the cost of mounting productions", the organisation said: "Faced with these ongoing challenges, the Royal Court is entering into a process that will see a range of measures taken to secure the long-term future of the organisation – these include remodelling the way that we work and reassessing staff teams."
Declining to provide further details on internal processes involving its staff, the institution said "difficult, yet necessary, steps" were being taken to ensure "that the Royal Court continues as a leading force in presenting world-class theatre" and to safeguard its mission of "cultivating and supporting writers".
A representative for the theatre clarified these steps could result in "potential" redundancies – but stressed that the organisation was only in the initial stages of defining its remodelling.
It comes after its accounts – filed under the English Stage Company Limited at the end of last year - highlighted a 5% cut to its Arts Council England funding.
In that report, Royal Court chair Anthony Burton warned the loss, though "better than expected", would nonetheless be "devastating to deal with".
He wrote: "Ten years of standstill funding are taking its toll, and while we are seeking more robust business models for the future, a lean staff team, prudent financial management and robust commercial activity, it remains a very delicate balance."
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This month, David Byrne joined as artistic director at the organisation. Byrne, formerly of New Diorama Theatre in Camden, succeeds Vicky Featherstone. His appointment was heralded by Burton as the "next chapter" in the life of the "mighty institution".
It is not the first time the theatre has navigated adverse conditions – in 1995, it battled a threatened closure over health and safety compliance, with an ACE grant of £16.2 million setting about its redevelopment. The refreshed Royal Court opened its doors in February 2000.
But its present-day pressures are felt more broadly by a number of venues – with the Royal Opera House also acknowledging an "incredibly difficult" financial environment earlier this month.
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