Key Takeaways:

• The WHO proposes a 21% budget cut, reducing its funding from $5.3 billion to $4.2 billion.
• Job reductions are expected at various levels, starting with senior leadership roles in Geneva.
• The budget crisis is attributed to the US withdrawal, exacerbating existing financial constraints.

The World Health Organization (WHO) is facing a financial crisis that has compelled it to propose a reduction in its workforce and budget by more than one fifth, following significant funding losses from the U.S. government. This decision was conveyed in an internal memo by WHO's Director-General Tedros Adhanom Ghebreyesus, dated March 28, as reported by Reuters and Channel News Asia.

The U.S., which historically has been the biggest contributor to the WHO's budget, contributing approximately 18% of its overall funding, ended its support citing dissatisfaction with the organization's handling of the COVID-19 pandemic and other international health challenges.

In light of an approximately $600 million income gap anticipated in 2025, the WHO has had to adjust its budget for the 2026-2027 period to $4.2 billion, down from previous projections of $5.3 billion. In February, the proposed budget was already reduced to $4.9 billion, reflecting ongoing financial insecurity.

The memo highlights that "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." Job cuts will primarily impact senior leadership positions at the WHO's headquarters in Geneva but will extend to all levels and regions. The organization aims to reassess its priorities and resource allocation before the end of April.

Tedros has emphasized the dire implications of this funding crisis, warning that drastic cuts to development assistance could lead to severe disruptions in global health initiatives. He noted that funding fluctuations not only affect WHO but also jeopardize health services in countries reliant on international aid.

Despite efforts to secure new funding channels from nations, private donors, and philanthropists, the WHO continues to grapple with the prevailing geopolitical climate, which has negatively affected its funding strategies. The organization is currently conducting a prioritization exercise to finalize its operational focus moving forward.

The impact of these funding cuts poses a threat not just to WHO operations but to global health initiatives, as Tedros pointed out that such disruptions could lead to increased morbidity and mortality from conditions like HIV and other communicable diseases. The organization's future now depends on its ability to navigate this financial turmoil and foster alternative funding sources, which could redefine its operational model.

For further details, see the original articles from Reuters, Channel News Asia, and The Jakarta Post.