1998: Getty cuts.

LESS than a year after the opening of the billion-dollar Getty Museum, the Getty Trust was sharply scaling back, the Business Journal reported in October 1998.

"One of the center's four institutes is being shut down and another is being cut or possibly merged into another," the Business Journal reported. "Two senior managers have resigned and layoffs are imminent, Getty Center officials confirmed."

Barry Munitz. who took over as president and chief operating officer of the Getty Trust in January of that year, told the Business Journal: "We don't have all of the money in the world. We are re-examining what we are doing. Some of it could be done more efficiently and more cost-effectively. We need to face fiscal reality.

That new fiscal reality included a $300 million paper loss, the effect of the declining stock market. The trust shut down its information institute, outsourcing most of its portfolio of programs. Trust officials also said the education institute would be scaled back and Munitz said the trust would pursue new revenue sources.

Last month, the resignation of museum director Deborah Gribbon stirred a major controversy in the art world. Gribbon said she had clashed with Munitz and was leaving as a result of philosophical differences over the future direction of the institution.

Munitz acknowledged their differences, but said he thought the tension was a natural part of the process and said he was surprised that she left.

In its annual report for the period ending June 30, 2003, released in June 2004, trust listed net assets of $6.8 billion, down from about $8.1 billion in the year ended in June 1999.

"Out of the Past" is published each week to celebrate the 25th anniversary of the Business Journal.