New York Archdiocese lays off workers to reduce financial strain from sex-abuse scandal

The Archdiocese of New York has announced layoffs affecting 18 administrative staff members as part of efforts to address financial difficulties, partly due to the ongoing sex abuse scandal within the Catholic Church. The job cuts represent a 4% reduction in the workforce.
Cardinal Timothy Dolan, in a letter to the archdiocese, said, as quoted by the New York Post, “Such decisions are never easy, but the current financial crunch the archdiocese faces, and the upcoming move to our new offices in 2025, make this the appropriate time to make some tough decisions.”
The layoffs are expected to save the archdiocese over $1.5 million annually. This comes after the recent sale of the Cardinal Cooke headquarters building in Midtown Manhattan for over $100 million. The archdiocese plans to relocate its administrative offices to a smaller building on Madison Avenue.
Dolan acknowledged that the staff reduction “is not a one-time event,” indicating the possibility of further job cuts. He stressed that the archdiocese aims to prioritize resources for its parishes, saying, “Our goal in all of this is to ensure that we are responding as effectively as possible to the needs of the people we are called upon to serve in the ten counties and nearly 300 parishes that make up this archdiocese.”
The financial strain from numerous sex abuse lawsuits against the Church remains a significant concern, according to Dolan. The archdiocese is currently in a legal dispute with its insurer over the coverage of some claims.
“We have worked hard to settle meritorious cases not covered by insurance, in justice to the victims of years past,” wrote Dolan. He stressed the ongoing financial burden of addressing over 400 cases through an independent compensation program, along with an additional 123 cases stemming from the Child Victims Act of 2019.
Dolan indicated that proceeds from the headquarters sale will help ease the financial strain from the sex abuse crisis, with the potential sale of other properties also being considered. He stressed the need for “strategy and sacrifice,” along with support from parishes and the community, to ensure long-term financial stability.
Despite these challenges, the archdiocese plans to use some of the savings to provide grants to parishes, especially for initiatives such as special masses for immigrant communities, according to the New York Post.