World Health Organization proposes budget cuts of over $1 billion

The World Health Organization (WHO) is proposing to reduce its staff and workload while cutting its budget by just over a fifth due to a reduction in funding from the United States, according to an internal memo seen by Reuters.

The administration of US President Donald Trump withdrew the US from the WHO after taking office in January, alleging that the global health agency mishandled the COVID-19 pandemic and other international health crises.

The US is by far the largest financial supporter of the UN health agency, covering about 18 percent of its total funding.

"The US announcement, combined with recent cuts in official development assistance in some countries to fund increased defense spending, has made our situation much more acute," the WHO letter, dated March 28 and signed by WHO Director-General Tedros Adhanom Ghebreyesus, said.

The US withdrawal from the WHO has exacerbated a funding crisis as member states have slashed their development spending. Faced with a revenue gap of nearly $600 million this year, the WHO has proposed cutting its budget for 2026-2027 by 21 percent from $5,3 billion to $4,2 billion, the memo said.

In February, the WHO executive board initially reduced the proposed budget for 2026-2027 from $5,3 billion to $4,9 billion, the document said.

"Despite our best efforts, we are now at a point where we have no choice but to reduce the volume of our operations and workforce," the memo said.

The WHO will reduce the number of senior management positions at its headquarters in Geneva, Switzerland, although this will affect all levels and regions, the memo added. It will decide by the end of April how to prioritize and allocate resources.

WHO documents show that the UN agency has more than a quarter of its 9.473 employees in Geneva.

An internal memo dated March 10, also seen by Reuters, said the World Health Organization had begun setting priorities and announced a one-year limit on employee contracts.

The memo states that staff are working to secure additional funding from countries, private donors and philanthropists.