World Health Organization Faces Major Layoffs Due to US Funding Reductions

The World Health Organization (WHO) has announced substantial job cuts and a reduction in operations following significant funding reductions from the United States. The agency's Director-General stated that the budget shortfall, amounting to several hundred million dollars, has forced the organization to reevaluate its workforce and operational capacity.

With the impending full withdrawal of US funding scheduled for January, the WHO has been preparing for a financial crisis. The US has historically been the largest donor to the WHO, contributing approximately $1.3 billion for the 2022-2023 budget cycle. This contribution primarily came through voluntary donations for specific projects rather than through fixed membership fees.

However, the US failed to pay its dues for 2024 and is not expected to fulfill its financial obligations for 2025, leading to significant budgetary constraints for the WHO. The Director-General presented a plan to staff and member states that outlined the necessary structural changes in response to this funding crisis.

The budget deficit is anticipated to create a salary gap of between $560 million and $650 million for the 2026-2027 biennium, which could affect approximately 25% of the organization's current staff costs. While specific numbers regarding job losses were not disclosed, the organization employs over 8,000 individuals globally.

In acknowledging the difficult nature of these cuts, the Director-General emphasized the need to approach the layoffs humanely. The most significant impact is expected to be felt at the WHO's headquarters in Geneva, where senior management will see reductions from 12 to 7 members, and the number of departments will be halved from 76 to 34. Regional offices will also experience varying degrees of impact, with some country offices in more affluent nations likely facing closure.

Despite the challenging circumstances, the Director-General pointed out that the situation could have been worse had member states not agreed in 2022 to increase membership fees significantly. This agreement means that the WHO expects to receive $1.07 billion in membership fees for the 2026-2027 budget cycle, even without contributions from the US.

In light of these budgetary challenges, the WHO plans to focus its efforts on core functions and support for countries that are transitioning away from reliance on aid towards greater self-sufficiency. The significant reductions in funding from the US, particularly affecting foreign aid initiatives, have had severe consequences for health projects in developing countries.

As the organization navigates this difficult period, it is committed to managing the transition in a manner that recognizes the importance of its work and the needs of member states, particularly in regions that are in critical need of health support.