Honolulu's Contemporary Museum is laying off more than half its work force as continued economic pressure has strained its endowment and led to a string of cost-cutting measures.

It is an unprecedented move for the museum, which never has laid off employees in the 20 years under its current name and location at Makiki Heights, said Georgianna Lagoria, executive director of the museum.

“;Unfortunately, we hit a big bump in the economic road and we had to make this really painful move in order to remain viable,”; she said. “;I see it as a temporary adjustment.”;

The nonprofit museum is laying off 11 of its 29 full-time employees and 14 of its 19 part-time employees, effective Oct. 15. The 25 affected workers, one of whom had worked at the museum for more than a decade, were notified Monday, said Lagoria, who has worked there since 1995 and is taking a voluntary 15 percent pay cut from her $100,000 salary.

It is the second Honolulu museum to lay off employees this year. In June, Bishop Museum laid off 14 workers - about 6 percent of its 221 staff members at the time - to cut costs. The museum cut back on its energy costs and has stepped up admissions-based program development, facility rentals and membership drives to help prevent more layoffs, said Donalyn Dela Cruz, public affairs director.

The Contemporary Museum's layoffs will help offset increased operating losses from the drop in the market value of its endowment, Lagoria said, declining to discuss the value of the investments. Up to 7 percent of the endowment can be drawn from each year, or less than the targeted 8 percent annual appreciation rate, but it won't be touched this year, Lagoria said.

During tough economic times, such as after 9/11, the museum draws around 2 percent.

Reductions, which include cutting back on printing, canceling the “;Japan Fantastic”; exhibition planned for 2009 showcasing the work of 14 artists from Japan, and saving energy, are intended to help save a half-million dollars.

 
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In another sign of the times, contemporary museum makes cost cutting measures including laying off about one third of its full time employees.

 

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Plans for construction next year of a new wing and other capital improvements on the museum's five-acre site are still in the permitting process with the city and will remain under review by the museum's board, Lagoria said.

Pualana Lemelle, the museum's public relations officer, is among the employees being laid off.

“;We are a tight-knit family,”; she said. “;It is kind of like a divorce in that people are leaving.”;

Lemelle, who has worked at the museum for nearly four years, said the layoffs came as a “;total shock.”;

“;Some of them have been here many, many years - they have an amazing knowledge and experience,”; she said. “;I really think people will be OK.”;

Lesa Griffith, director of communications at the Honolulu Academy of Arts, said the academy's endowment also has taken a hit recently, “;But not to the extent that would make it necessary for any drastic changes.”;

The academy implemented a hiring freeze in June and also is working with its 140 employees to cut costs, Griffith said.

“;We are starting to be a lot more frugal in how we use paper, use electricity, we are doing more design work in-house,”; Griffith said. “;We are shaving down all over. We are doing what we need to do to have the academy operating at full capacity.”;