"Sudden Drop In Income": WHO Announces Layoffs Amid US Funding Cuts

In a dramatic development that could reshape global health operations, the World Health Organization (WHO) has announced major layoffs and program cuts following a significant reduction in funding from the United States. The announcement, made by WHO Director-General Tedros Adhanom Ghebreyesus on Tuesday, revealed that the agency is grappling with a projected salary gap of up to $650 million for the upcoming biennium—a direct consequence of the Trump administration’s planned full withdrawal from the agency.

The United States, the WHO’s largest single donor, contributed $1.3 billion to its 2022–2023 budget, primarily through voluntary contributions for targeted health programs. However, the US failed to pay its assessed contributions for 2024 and is expected to withhold its 2025 dues as well, leaving the global health body in a precarious financial situation.

"The sudden drop in income has left us with a large salary gap and no choice but to reduce the scale of our work and workforce," Tedros told WHO member states, according to a transcript of his remarks. The agency is now preparing for sweeping structural changes to its operations, including job reductions, consolidation of departments, and closure of offices in wealthier nations.

While Tedros refrained from specifying the exact number of job losses, he acknowledged that “we will be saying goodbye to a significant number of colleagues,” emphasizing that these decisions are being approached “humanely.” The WHO employs over 8,000 people worldwide, with staff members working on a wide range of health initiatives, from disease surveillance to maternal care and emergency response.

The financial shortfall is particularly striking: the WHO now anticipates a $560 to $650 million salary gap for 2026–2027. Even at the lower end, this figure accounts for nearly 25% of current staff costs. Tedros clarified that this doesn’t automatically translate into a 25% staff reduction but admitted that cuts would be substantial.

The most severe impact will be felt at WHO’s Geneva headquarters, where the number of departments is being slashed from 76 to 34. Senior leadership positions are also being trimmed, with the executive team being reduced from 12 to just seven members. While regional offices will be affected to varying extents, some country offices in high-income nations will likely be shut down entirely.

“These are very painful decisions for all of us,” Tedros said. “But they are necessary to ensure the sustainability and effectiveness of WHO’s core mission.”

The Trump administration's stance has already sent shockwaves through the broader global health community. In addition to cutting WHO funding, the White House has begun dismantling the US Agency for International Development (USAID) and freezing a vast array of health-related foreign aid initiatives. Tedros warned that these developments are having “very severe” effects, particularly in developing countries that rely heavily on international assistance to maintain healthcare systems and respond to crises.

Despite these challenges, Tedros noted that WHO member states had previously agreed in 2022 to increase fixed membership contributions in an effort to reduce dependency on voluntary—and often earmarked—donations. As a result, the agency expects to receive around $1.07 billion in membership fees for the 2026–2027 period, up from what would have been $746 million without that agreement. However, even this increase is insufficient to offset the shortfall caused by the absence of US contributions.

In response, WHO will begin focusing more narrowly on its core functions—such as providing technical guidance, coordinating global disease responses, and supporting health system strengthening. At the same time, it will encourage countries, especially those in developing regions, to move towards greater self-reliance in health financing and reduce dependence on aid.

“Many countries need our support now more than ever,” Tedros said. “But we must also support them in transitioning away from aid dependency.”

The news of impending layoffs and scaled-back operations comes at a critical time for global health. After years of navigating the COVID-19 pandemic and other public health emergencies, the demand for WHO’s leadership and resources remains high. From combatting new outbreaks to addressing chronic health issues and supporting fragile health systems, the agency’s role continues to be vital.

The Trump administration's decision marks a significant shift in the US’s role on the global stage, as it moves away from multilateralism and international cooperation. The absence of American financial support will undoubtedly impact WHO’s ability to carry out its mandate and may leave gaps in global health security.

Observers and public health experts have expressed concern that this development could further destabilize international health efforts, particularly in low-income countries already facing under-resourced healthcare systems. As WHO scales back, there’s growing uncertainty about who will fill the vacuum left by reduced funding and staffing.

In the coming months, all eyes will be on how WHO adapts to this financial storm—and whether other member states or private donors will step in to help close the funding gap. Until then, the global health community must brace for reduced services, fewer programs, and a restructured WHO navigating an increasingly uncertain future.