18/10/2001

On the 11th of October Sotheby’s announced it was making 14% of its worldwide workforce redundant amid a global downturn in the art market. These cuts affecting a total of 1,765 employees, follows an 8% slash in the workforce in January 2001. Sotheby’s also announced the introduction of a $ 13 million (€ 14.3 million) restructuring package to cover severance costs and logistical expenses in the third quarter. The company, which hopes to save $ 50 million (€ 55.3 million) annually from the cuts, has also instigated a review of Sotheby's.com, its online purchasing site. “The savings from our second restructuring plan are being initiated during the fourth quarter of 2001 and should be realised fully in 2002,” said Bill Ruprecht, chief executive of Sotheby's. Also dogged by a drop in profits, losses suffered from the anti-trust investigations into commission collusion in the U.S. are thought to have cost the beleaguered auction house dear.