80 Urdd jobs at risk as organisation faces £14million income drop due to coronavirus
Welsh youth organisation, Urdd Gobaith Cymru, has announced 80 jobs and 70 casual posts are under threat after a significant drop in income due to the coronavirus pandemic.
The organisation revealed it's facing a reduction of £14million over the next two years -which means significant job cuts and remodelling of its services. Most of the 320 Urdd staff are already on Furlough, which comes to an end in October.
The Urdd’s staffing costs alone amount to £6million a year and even after making cuts, the organisation says it faces significant financial losses over the next two years. On 20 March 2020, the Urdd's services were closed which included three residential centres as well as postponing the Urdd Eisteddfod in Denbighshire. The closure of the residential centres has resulted in a loss of income of £500,000 per month.
Sian Lewis, Chief Executive of the Urdd, said: “Today is a sad day for this unique organisation which is an integral part of the lives of so many people in Wales. The impact of the pandemic has been devastating for every Department within the Urdd. There is no option but to review costs across the organisation and see how we can continue to offer some services within the safety guidelines, with the primary objective of safeguarding the future of the Urdd."
“The Urdd has always strived to generate its own income and not be too dependent on public funding and has successfully developed a strong business model. Last year, our turnover was over £10m with only 19% coming from the public purse. Now with our centres closed to residential courses, no income from our community and sports work, the situation has and will continue to put a huge financial strain on the Urdd. No organisation could survive such a situation without making cuts and unfortunately that is what the Urdd is facing. "
The Urdd was established in 1922 and has 55,000 members between the ages of 8 – 25.
The Chairman of the Urdd, Dyfrig Davies, said it's "the most challenging period in its 98 year history."
“It is with a heavy heart that we share the news about the Urdd’s situation. Clearly, preserving the workforce and safeguarding the Urdd has been foremost in our minds for nearly four months now. The future is uncertain, but we must plan to ensure the future and longevity of the Urdd and our membership."