Published by Global Banking & Finance Review®
Posted on March 29, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleThe WHO plans a 21% budget cut due to U.S. funding withdrawal, affecting jobs and operations. The U.S. was WHO's largest financial backer, and the cut creates a $600 million gap.
By Olivia Le Poidevin and Emma Farge
GENEVA (Reuters) -The World Health Organization (WHO) is proposing to reduce staff numbers and the scale of its work as it slashes its budget by just over one fifth due to the impact of U.S. funding cuts, according to an internal memo seen by Reuters.
U.S. President Donald Trump's administration withdrew from the WHO upon taking office in January, saying the global health agency had mishandled the COVID-19 pandemic and other international health crises. The U.S. is by far the U.N. health agency's biggest financial backer, contributing around 18% of its overall funding.
"The United States' announcement, combined with recent reductions in official development assistance by some countries to fund increased defence spending, has made our situation much more acute", stated the WHO memo, which was dated March 28 and signed by WHO's Director-General Tedros Adhanom Ghebreyesus.
The WHO did not immediately respond to a request for comment.
The U.S. withdrawal has exacerbated a funding crisis due to member states reducing their development spending. Faced with an income gap of nearly $600 million this year, the WHO has proposed to slash its budget for 2026-27 by 21% from US$5.3 billion to US$4.2 billion, according to the memo.
In February, the WHO's executive board had initially reduced the proposed budget for 2026-27 from US$5.3 billion to US$4.9 billion, according to the note.
"Despite our best efforts, we are now at the point where we have no choice but to reduce the scale of our work and workforce," the memo said.
The WHO will reduce jobs at senior leadership level at its headquarters in Geneva, Switzerland, though all levels and regions will be affected, the memo added. It will decide on how to prioritize its work and resources by the end of April.
WHO documents show the U.N. agency has over a quarter of its 9,473 staff in Geneva.
An internal memo from March 10, which was also seen by Reuters, said the World Health Organization had begun fixing priorities and announced a one-year limit on staff contracts.
The memo said that staff were working to secure additional funding from countries, private donors and philanthropists.
(Reporting by Olivia Le Poidevin; Editing by Aidan Lewis)
The article discusses the WHO's proposal to cut its budget and jobs due to the U.S. withdrawal and funding crisis.
The WHO is cutting its budget due to the U.S. withdrawal, which was its largest financial contributor, leading to a significant funding gap.
The WHO plans to cut its budget by 21%, reducing it from $5.3 billion to $4.2 billion for 2026-27.
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