The Royal Court is considering making redundancies as part of a restructuring process after admitting it needs to find a new business model to sustain the theatre following a difficult financial year and cuts to its funding. The theatre, which is dedicated to new writing and recently installed David Byrne as its new artistic director after Vicky Featherstone’s 10-year tenure, said it was “remodelling” the way it worked and “reassessing staff teams” in order to secure the long-term future of the organisation, while refusing to rule out redundancies. In a statement, the theatre said it had been “heavily impacted by a challenging funding climate, the continued impact of the pandemic and cost of living crisis”, noting that high rates of inflation had led to a “drastic uplift” in the cost of putting on productions. A spokesperson said: “Faced with these ongoing challenges, the Royal Court is entering into a process that will see a range of measures taken to secure the long-term future of the organisation – these include remodelling the way that we work and reassessing staff teams. “These difficult yet necessary steps are being taken to ensure that the Royal Court continues as a leading force in presenting world-class theatre, and can remain true to its mission, cultivating and supporting writers – undiscovered, emerging and established.” The statement came after several theatres, including the Royal Court, admitted they were in precarious financial positions due to audiences staying away after the Covid-19 pandemic and being hit by funding cuts. The Young Vic and Hampstead Theatre said they would have to draw on their reserves after “devastating” financial challenges left them having to consider overhauling their programming. The Royal Court’s chair, Anthony Burton, said the 5% cut to its Arts Council England funding was “devastating”. He said: “The business model that has supported the right to fail alongside success is no longer sustainable. Ten years of standstill funding are taking its toll, and while we are seeking more robust business models for the future, a lean staff team, prudent financial management and robust commercial activity, it remains a very delicate balance.” The theatre is famous for championing new writing – work that carries an inherent financial risk – bringing plays such as John Osborne’s Look Back in Anger and Andrea Dunbar’s Rita, Sue and Bob Too to audiences in the capital. Byrne takes up the reins during arguably the most challenging time for the Royal Court since the mid-1990s when the theatre saw off threats of closure over health and safety compliance issues.