The Henry Ford Museum estimates $10 million budget deficit, cutting 80% of staff
DETROIT - The Henry Ford Museum is cutting back on expenses to alleviate some of the economic impact from the coronavirus.
On Thursday, the institution announced it was cutting 80% of its staff - or 1,400 employees. Those that will remain at the museum will have their pay reduced by 10 to 25%.
Anticipating at least a $10 million budget deficit for the 2020 year, the museum is among several nonessential businesses forced to close over an executive order restricting access to public and private gathering spaces.
“This unprecedented crisis is affecting each of us individually and The Henry Ford collectively,” said Patricia Mooradian, president and CEO of The Henry Ford. “While this time is painful for all of us, it is vital that our organization make these difficult decisions now to best position The Henry Ford for the future health and well-being of our team, our institution, our guests, our stakeholders and our community.”
For the second week in a row, the U.S. Labor Department reported the country's largest rise in unemployment filings after businesses in ever state laid off workers and closed their doors. In Michigan alone, a record 311,000 people filed for aid, more than double from the previous week.
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The layoffs are expected to have a ripple effect throughout the economy as workers with no income will struggle to pay their rent and utilities. The federal government is working to ease the burden with $1,000 checks that will be mailed out to residents, however, those could take weeks and may still not be enough.
It will be years before the economic fallout from the coronavirus outbreak can be measured, but if lessons from the Great Recession in 2008 are any indication, it will hit the country's poorest hardest.
Originally suspending its operations in March, The Henry Ford Museum has extended its closures until May 31. For any full-time employees that are placed on temporary leave, they will continue to have their health benefits paid in full. A small number of staff like security and animal care will continue to work with no pay reduction.