World Health Organization announces cost cutting after US withdraws funding

The World Health Organization (WHO) has initiated a new prioritization process and announced a limitation on employee contract lengths to one year. This move aims to address the challenges the UN agency faces in maintaining its operations after the United States halted funding. These measures are critical for ensuring the organization's financial stability.

An internal memo released on Tuesday, signed by WHO Assistant Director-General Raul Thomas, detailed the latest in a series of cost-cutting measures taken since US President Donald Trump stopped funding the organization in January. The memo noted that WHO senior officials have been prioritizing work matters for the past three weeks to ensure the sustainability of the global health agency. This prioritization is essential for adapting to the changed financial landscape.

The memo stated: "Despite the highly volatile operating environment, WHO senior management is working to respond to these evolving trends through a prioritization process." The memo also said: "Their work will ensure that every resource is directed to the most pressing priorities, while maintaining WHO's ability to make a lasting impact." This approach will help the WHO to focus on its core missions.

The memo added that staff are working to secure additional funding from countries, private donors, and philanthropists, but did not indicate whether these processes have been successful. It did not announce immediate layoffs, but stated: "Given the severity of the challenges we face, some difficult decisions are unavoidable." These decisions will be made with careful consideration of their impact.

President Trump, in his initial days back in office in January, signed a series of executive orders, including one to withdraw from the WHO. He stated that the WHO had failed to act independently of "undue political influence from WHO member states" and demanded that the US pay "an unfairly onerous fee." This action meant that the US would cease all contributions to the UN agency within 12 months. The United States is the WHO's largest financial supporter, contributing approximately 18% of the WHO's total funding, which experts say amounts to around $1 billion (A$1.6 billion) annually.

The Bill & Melinda Gates Foundation is the WHO's second-largest donor, although most of its funding is earmarked for polio eradication. Its CEO, Mark Suzman, stated on social media platform X that the foundation will continue to work to strengthen, not weaken, the WHO. Germany is the next largest national donor after the Gates Foundation, with mandatory fees and voluntary contributions totaling approximately 3% of the WHO's funding. The organization's annual budget is approximately $6.8 billion.