The Contemporary Museum, Honolulu, has cut its operating budget and laid off 25 employees, reports the Pacific Business News. The cut involves more than half of the museum's official staff, affecting 11 full-time and 14 part-time employees.

The museum acknowledged the inevitable effect of the struggling economy on nonprofits, admitting that the move was made to help “offset increased operating expenses brought about by the drop in market value of the museum’s endowment.” Data from 2006 shows that the museum had annual operating expenses of $2.8 million that year and $1.93 million in public donations.

In addition to the staff changes, executive director Georgianna Lagoria has volunteered to take a 15 percent pay cut from her salary of $100,000, according to the Associated Press. Other reductions will include canceling the major “Japan Fantastic” exhibition scheduled for December and a temporary freeze on other traveling shows.

“It is unprecedented in our 20-year history on Makiki Heights to have to make significant staff reductions,” said board president Vi Loo in a statement.