Archdiocese of New York Cuts Staff and Sells Properties to Address Financial Strain from Sex-Abuse Scandal

The Archdiocese of New York is laying off staff members and selling assets as it faces a significant financial crisis, partly due to the ongoing costs of the Catholic Church’s sex abuse scandal.

In a letter to parishioners, Cardinal Timothy Dolan announced the layoffs of 18 staff members, roughly 4% of the workforce, from the archdiocese’s administration. This move is expected to save more than $1.5 million as the church focuses resources on its parishes, which span ten counties and nearly 300 parishes.

The archdiocese previously announced the sale of the Cardinal Cooke headquarters building in Manhattan. G.N.Miller/NYPost

Dolan acknowledged the difficult decision, noting that the restructuring was necessary due to the archdiocese’s financial crunch and the upcoming relocation to new offices in 2025. He also warned that more job cuts could follow, though he emphasised that these reductions would likely occur through attrition rather than additional layoffs.

The Archdiocese had previously announced the sale of its headquarters building, the 40,000-square-foot Cardinal Cooke building on First Avenue in Midtown Manhattan, for over $100 million. The property was sold to The Vanbarton Group, a real estate developer. Staff members previously based at the building are being relocated to a smaller office at 488 Madison Ave., near St. Patrick’s Cathedral.

Dolan wrote in a letter that the layoffs are “not a one-time event.” AP Photo/Julia Demaree Nikhinson

Dolan stated that the Church’s financial struggles are primarily driven by the mounting costs of sex abuse cases, which remain a significant concern. The Archdiocese is in a legal battle with its insurer, Chubb, which has refused to cover some of the claims.

The Vanbarton Group reportedly bought the Cardinal Cooke building for over $100 million. G.N.Miller/NYPost

The Archdiocese has settled over 400 cases through its Independent Reconciliation and Compensation Program and 123 more under the Child Victims Act of 2019. However, approximately 1,400 cases remain pending, some dating back to World War II. While not all of the allegations involve priests, the most significant number of complaints come from a former janitor and a former volunteer basketball coach.

The proceeds from the sale of the Cardinal Cooke building will help address the financial burden caused by the abuse cases. Dolan also indicated that other properties are considered for purchase as part of a broader strategy to stabilise the Archdiocese’s finances.

Despite the financial setbacks, Dolan emphasised that the archdiocese would continue to support parishes and serve its communities. Some of the funds from the restructuring will be used to provide grants to parishes, such as funding for special Masses for immigrant communities within the Archdiocese’s service area, which includes Manhattan, Staten Island, The Bronx, and northern suburbs.