They are firing 18 employees.
The Roman Catholic Archdiocese of New York has laid off 18 employees as part of a broader financial restructuring in response to financial challenges, including settlements related to clergy sex abuse claims. Cardinal Timothy Dolan, who heads the Archdiocese, announced these layoffs earlier this month, explaining that the adjustments were necessary due to “undisclosed financial pressures.” These pressures are believed to be linked to declining donations, worsened by the COVID-19 pandemic, and the continuing financial obligations stemming from the clergy abuse scandal.
As part of the reorganization, the Archdiocese is also selling the Cardinal Cooke Building in New York City, which has served as its headquarters. The proceeds from this sale will help fund the move to a smaller office space near St. Patrick’s Cathedral in 2025. Dolan expressed his gratitude to the employees affected by the layoffs, noting the tough nature of such decisions given the financial crunch and upcoming relocation.
In 2019, New York passed the Child Victims Act, which extended the statute of limitations for child sex abuse cases, allowing victims to file claims up until the age of 55. This law was introduced to give survivors more time to come forward, as many victims struggle to process their trauma until much later in life. This legislation has impacted the Archdiocese, which continues to face the financial burden of these claims.
Earlier this year, the Archdiocese filed a lawsuit against its insurer, Chubb Ltd., accusing the company of refusing to cover the cost of sex abuse settlements, despite the Archdiocese having paid over $2 billion in premiums. Dolan criticized Chubb for attempting to avoid its legal obligations, claiming the company was neglecting to support the victims of abuse. However, Chubb has countered, accusing the Archdiocese of covering up the abuse and withholding information regarding its knowledge of the incidents.
Dolan has also reported that the Archdiocese has settled over 500 abuse cases through various compensation programs, but around 1,400 cases remain unresolved. Despite the ongoing financial struggles, the Archdiocese continues to face legal and public pressure related to the clergy sex abuse crisis.