Layoffs hit historic Seattle theatre as $7.5M deficit forces staff cuts

The historic 5th Avenue Theatre announced Friday it will eliminate about 14 staff positions and pause some education programs due to a major budget shortfall.

Cuts will reduce the nonprofit’s staff from 55 employees to about 41 and will affect many departments, including marketing, box office, and other operations, according to The Seattle Times.

The theater is facing a $7.5 million deficit that has accumulated since the COVID-19 pandemic. Leaders said rising production and operating costs, combined with a steep decline in subscription revenue, have strained the organization’s finances and forced it to dip into cash reserves.

Pandemic losses, rising costs strain theater finances

Executive and Artistic Director Bill Berry said the theater is launching a “stabilization and capitalization” fundraising campaign to raise $12 million over the next three years. The immediate goal is to secure $6 million and begin reducing the deficit within six months.

The theater has seen some signs of recovery. The Seattle Times reports that subscriptions have increased from 9,093 last season to nearly 10,000 today. However, that figure remains roughly half of what it had before the pandemic.

Managing Director Ariel Gomez Bradler said the organization has already implemented several cost-cutting measures. Leadership salaries have been reduced since 2023, and the theater has scaled back its production schedule from six shows per season to five.

Those changes are expected to save about $5.3 million in fiscal year 2026. The new staff and program reductions are projected to cut another $3 million from the theater’s roughly $23 million budget.

Seattle arts groups continue recovering from pandemic impacts

According to KUOW, the financial struggles at the 5th Avenue Theatre reflect broader challenges across Seattle’s arts community. Several major organizations are still recovering from pandemic-era losses and declining subscriptions.

In May and June of 2024, the Seattle Repertory Theatre announced layoffs affecting much of its artistic staff. Since then, Seattle Rep has been working to turn things around.

“Like many arts organizations across the country, Seattle Rep faced difficult staffing decisions in the past, specifically during our 2023/24 season. Over the past two years, however, we have steadily rebuilt our staff while focusing on reconnecting with audiences and strengthening our subscriber base,” Lexi Clements, Seattle Repertory Theatre Director of Marketing, said.  “Those efforts are paying off—this past season we saw significant growth in attendance and celebrated two of the highest-grossing productions in the theater’s history, “The Play That Goes Wrong “and “Come From Away.”

Other theaters have also made structural changes. The ACT Theatre is exploring a possible merger with Seattle Shakespeare Company, while the 5th Avenue Theatre has discontinued its new works development program.

Despite the challenges, the 5th Avenue Theatre plans to move forward with its newly announced 2026–27 season.

The lineup includes locally produced productions of The Wizard of Oz and A Chorus Line, along with touring productions such as Operation Mincemeat: A New Musical and Maybe Happy Ending.