Sotheby’s, the iconic global auction house known for record-breaking art sales and luxury dealings, has announced sweeping layoffs at its New York headquarters. Over 100 employees, including junior staff, back-office teams, and top-tier specialists, have been let go. This wave of job cuts follows earlier reductions in London and arrives after a disappointing November sales season, which brought in $533.1 million—less than half of the $1.2 billion generated during the same period last year from marquee Impressionist, modern, and contemporary art auctions.

In a carefully worded statement, Sotheby’s cited “growth” and “focus” as the drivers behind the layoffs. However, the timing is striking, given the recent $100 million purchase of the Breuer Building on Madison Avenue, which will serve as Sotheby’s new New York headquarters. This investment was partly funded by a $1 billion cash infusion from Abu Dhabi’s ADQ sovereign wealth fund in October.

The layoffs come as French telecom billionaire Patrick Drahi, Sotheby’s owner since 2019, navigates mounting financial challenges. With a reported $60 billion in debt, Drahi has maintained a bold strategy, continuing to invest in high-value real estate and international expansions, including new Sotheby’s headquarters in Hong Kong and Paris.

Despite these efforts, the global art market is facing a cooling period. An anonymous former Sotheby’s executive described the layoffs as “radical cost-cutting,” a move aimed at adapting to shifting market conditions. The juxtaposition of lavish investments and workforce reductions underscores the tension between Sotheby’s luxury image and the financial realities it faces.

As the art market adjusts to new dynamics, Sotheby’s remains a leader in the auction world. However, the human cost of these changes cannot be overlooked. For an institution that trades in masterpieces, the transformation it now undertakes is as profound as the works it sells.