• WHO faces substantial operational cuts due to US funding reductions.
• Director-General Tedros Adhanom Ghebreyesus announced layoffs and a new structure.
• Estimated salary gap for 2026-2027 between $560 million and $650 million.

The World Health Organization (WHO) is facing significant operational cuts and layoffs as the agency confronts a budget deficit caused by substantial funding reductions from the United States. Director-General Tedros Adhanom Ghebreyesus remarked on the issue, stating, "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," during his address to member states, as reported by South China Morning Post, Le Monde, and Channel News Asia.

The upcoming withdrawal of U.S. funding, which has historically accounted for a significant part of the WHO’s budget, has been particularly troubling. In his address, Tedros noted that the organization is preparing for an estimated salary gap for the 2026-27 period that could be between $560 million to $650 million. He stated that "the refusal of the US to pay its assessed contributions for 2024 and 2025, combined with reductions in official development assistance by some other countries," has brought the agency to this critical juncture according to South China Morning Post, Le Monde, and Channel News Asia.

In a bid to navigate these challenges, WHO intends to restructure its operations, which includes reducing its senior leadership team from 12 to seven and decreasing the number of departments from 76 to 34, as emphasized by Tedros. He described these decisions as "very painful" while highlighting the likely impact on the headquarters in Geneva, and potentially affecting regional offices, as mentioned in South China Morning Post, Le Monde, and Channel News Asia.

Many employees will be affected, but Tedros has pledged to ensure that the layoffs are conducted "humanely." As the agency prepares for this restructuring, it also recognizes the increasing need for support amid ongoing global health challenges, stating that "many countries need our support now more than ever," which Tedros iterated, according to South China Morning Post, Le Monde, and Channel News Asia.