Sotheby's 'to cut 200 more staff'

Sotheby's is reportedly planning to lay off 200 more employees to cut costs.

The job losses are expected to hit administrative and support staff among Sotheby's 1,900 employees worldwide.

Sotheby's has been trying to trim costs since it was saddled with huge legal bills stemming from its involvement in a price-fixing scandal with rival Christie's.

The company sent a memo to employees last week alerting them that it would have to shed additional staff after undertaking a restructuring programme earlier in the year which reduced staffing levels by 8%.

The move is an ominous sign for the art auction industry ahead of next month's sales, which represent one of the two periods of high activity in its calendar.

The need for additional cuts may have been triggered by the fall in equity markets, which has cast a mood of uncertainty over the art market as it gears up for next month's sales.

Some dealers have said activity had already slowed in recent months, but they have been looking forward to next month's sales for a true gauge of the market.