The Rubin Museum of Art in Manhattan will shutter after two decades of championing its prized collection of art from Himalayan Asia, with leaders saying on Wednesday that they wanted to envision a modern museum without walls. But the museum, which will sell its building, was also facing financial challenges and had become a focal point in recent discussions about the history of religious objects being looted from Asian countries.

Doors to the Rubin Museum will close Oct. 6, when its last exhibition ends, before the institution transitions to a skeleton crew that will process long-term loans and research inquiries and help with fund-raising. Nearly 40 percent of its employees will lose their jobs, the latest in a series of cutbacks that started in 2019 when the museum’s leader, Jorrit Britschgi, eliminated nearly two dozen positions because of dwindling funds.

“The definition of what a museum is has evolved dramatically in recent years,” Noah Dorsky, the museum’s board president, said in a statement. “Historically, the Rubin’s culture embraces continual change and evolution, and in our new incarnation, we are redefining what a museum can be.”

The closure of its galleries shocked some museum professionals, who said it was the first time in their recent memory that a major museum had closed in New York City. Leading museums have faced a severe cash crunch since the Covid-19 pandemic changed the habits of tourists, leading several institutions to cut jobs and raise ticket prices. However, none have taken the Rubin’s extreme step of relinquishing all their real estate.

“Financially, things are really difficult for institutions right now,” said Laura Raicovich, a former museum executive who writes about challenges facing the arts. “The scarcity model of how cultural organizations operate in this country has become extreme, where the reliance on individual donors and corporations is higher than ever before.”