Short on Fund-Raising, Red Cross Will Cut Jobs

http://www.nytimes.com/2008/01/16/us/16charity.html?ref=us

By STEPHANIE STROM
Published: January 16, 2008

Facing a $200 million operating deficit, the American Red Cross is preparing to cut as much as one-third of its headquarters staff, up to 1,000 employees, and pare regional management.

The cutbacks will not diminish the relief operations and other services provided by the organization, said Suzy C. DeFrancis, the Red Cross’s chief public affairs officer.

“We’ve just come to the conclusion that we’ve gotten too top heavy,” Ms. DeFrancis said, “that we are spending more than we are bringing in, and that the fund-raising environment is competitive.”

But she added, “We believe this exercise will make us strong” in delivering service.

She said the 126-year-old organization had not tapped its $800 million endowment to cover the deficit but relied instead on loans that it uses as part of its normal cash-management process. Its budget in 2007 was $3.45 billion, which includes its blood operations as well as its disaster services.

Ms. DeFrancis said she needed more time to determine whether the deficit was the largest in Red Cross history.

FULL story at link.