Theatre News Wire

Chicago's renowned Steppenwolf Theatre has announced a significant reduction in its workforce, laying off 12% of its staff. This decision comes as a direct result of declining revenue streams, the cessation of federal COVID relief funding, and a decrease in subscribers.

The theatre's executive director, Brooke Flanagan, disclosed that the layoffs would affect 13 full-time employees and result in the elimination of seven open positions. Flanagan commented on the challenges faced by many non-profit theaters, stating, "Steppenwolf Theatre Company has been negatively impacted by a protracted post-pandemic economic recovery for our sector and the rising cost of inflation."

A closer look into the theatre's situation reveals a significant drop in subscription sales and overall attendance. In 2019, Steppenwolf boasted a subscription base of 10,000, which has since plummeted to nearly 6,000 members in the current year. Additionally, single-ticket sales revenue has seen a decline of 31%. Flanagan attributes these declines to various factors, including traffic and safety concerns, reluctance to venture into the city, and persistent COVID-related apprehensions.

The pandemic has also influenced the way audiences consume arts and entertainment. With the surge in streaming services during the pandemic, many have adopted a stay-at-home mentality, leading to decreased attendance at live theater performances. Flanagan noted that while concerts and sporting events have seen a resurgence in attendance, live theater remains a different experience altogether.

Financially, Steppenwolf received $7,480,000 in federal emergency relief funding between 2020 and 2022. However, the theater's operating budget has decreased from a pre-pandemic high of $20 million to $16 million in 2023. This reduction is evident in the current season's programming, which features six productions, down from eight in the previous season and nine in earlier years. Flanagan highlighted that expenses have surged by 19% this year due to factors like inflation, cost of living impacting wages, and the costs associated with production materials.

Despite these challenges, the past three years witnessed the inauguration of Steppenwolf's new Lefkofsky Arts and Education Center, a $56 million project. This initiative aimed to create an arts and entertainment hub at the company's Lincoln Park site. However, the theater has faced inconsistent audience responses post-pandemic, with some shows being highly successful while others fell short of their revenue goals.

In light of these developments, Flanagan emphasized the importance of community support for the arts. She urged the community to "rediscover the joy of seeing live theater" and to actively support local and regional theaters. As Steppenwolf approaches its 50th anniversary season in 2025-26, the theater remains hopeful for a brighter future, backed by new funding streams and a three-year budget arc.