WHO faces budget cuts and workforce reduction amid funding crisis

The World Health Organisation (WHO) is set to reduce its workforce and scale back its operations as it grapples with a significant budget cut of just over one-fifth, primarily due to the withdrawal of US funding. This decision follows an internal memo, dated 28 March, signed by WHO director-general Tedros Adhanom Ghebreyesus, which highlights the financial challenges faced by the global health agency.

A Reuters report said the crisis was exacerbated when the United States, historically the WHO’s largest financial contributor, withdrew its support upon the commencement of President Donald Trump’s administration in January.

The US had previously provided approximately 18 per cent of the WHO’s total funding. The memo also pointed to reductions in development assistance by several nations, which have redirected resources towards increased defence spending, further intensifying the organisation’s financial strain.

As a result, the WHO has proposed a 21 per cent reduction in its budget for the 2026-27 period, bringing it down from USD5.3 billion to USD4.2 billion. This follows an earlier revision in February, when the WHO’s executive board had already trimmed the proposed budget to USD4.9 billion.

Faced with a funding shortfall of nearly USD600 million this year, the WHO has acknowledged that it has little choice but to curtail its operations and workforce. The organisation plans to implement job cuts, particularly at the senior leadership level at its headquarters in Geneva, Switzerland. However, the reductions will extend across all levels and regions, affecting a wide spectrum of personnel.

According to WHO records, Geneva hosts over a quarter of the organisation’s 9,473 staff members. To navigate the financial shortfall, the WHO has started reprioritising its work and has imposed a one-year limit on staff contracts, as outlined in a separate internal memo dated 10 March.

The organisation is also actively seeking additional funding from member states, private donors, and philanthropists to mitigate the impact of the budget constraints.

A final decision on how to allocate resources and prioritise activities is expected by the end of April. Meanwhile, the WHO has yet to provide an official response to queries regarding these developments.