NEW YORK, USA (AP) — The board of the financially troubled New York City Opera voted Friday to move out of its home at Lincoln Centre, cut staff across the board and scale back its performance schedule as it fights for its survival.

Friday’s move comes as the 68-year-old organisation deals with a dwindling endowment, a multimillion-dollar deficit, and contentious negotiations with its union staff.

George Steel, the general manager and artistic director of the opera, told The Associated Press on Friday that “the sacrifice will be shared from top to bottom in the company”. Steel said the board’s actions will allow for further growth and he felt encouraged by the decision. He said an announcement on a new home would be made in weeks.

“This is certainly a serious transition for the opera… but the thing that makes me optimistic is that I can see a balanced budget model for the company that will provide a foundation for sustainable growth,” he said.

The New York City Opera is revered as a pillar of American culture that has delivered daring new productions and built the careers of such stars like Placido Domingo, Renee Fleming and Beverly Sills.

But for some time, the opera has been struggling. The company’s endowment has dwindled from US$55 million to US$9 million, according to audits obtained by the AP. And City Opera has put off announcing its 2011-2012 season as it faces a projected deficit of US$5 million.

The board chairman last month personally contributed an emergency US$2.5 million toward plugging the deficit, company officials said. It is also tussling over a new contract with its singers and production staff.

The New York City Opera has been at Lincoln Centre, also home to the City Ballet and other artistic organisations, since 1966.

“We love Lincoln Centre. It’s a wonderful place but the cost of being here is simply too high,” Steel said.

Lincoln Centre spokeswoman Betsy Vorce declined to comment.

Alan Gordon, executive director of the American Guild of Musical Artists, which represents singers, dancers, stage directors and stage managers, said the union’s members were “distraught” over the decision.

The move may save money but will do little to address the opera’s flagging ticket sales, Gordon said. He blamed Steel’s choices for shows, such as the recent production of Seance on a Wet Afternoon.

“He refuses to programme any of the big, solid operas that people do go to see,” Gordon said. “If they want to be a regional, part-time, freelance theatre, then go with God, but that’s not the world that opera singers work in.”