Bill Gates’ foundation confirms 500 layoffs amid $9bn spending push

The Bill & Melinda Gates Foundation has confirmed plans to cut around 500 jobs over the next five years, even as it prepares to deploy a record $9 billion annual budget, underlining a sharp recalibration of costs as the organisation accelerates spending towards its planned closure.

The layoffs, which will reduce the foundation’s workforce by more than a fifth, form part of a broader effort to cap operating expenses and channel more funds directly into programmes, the foundation said in a statement. Reuters reported that the job cuts will include some currently vacant roles that will remain unfilled.

The announcement follows the foundation’s decision to commit to a $9 billion annual payout, the highest in its history, as it seeks to maximise impact before winding down operations in 2045. The Wall Street Journal reported that Bill Gates has said the foundation plans to spend an additional $200 billion over the next two decades before closing.

According to the foundation, its board has approved a cap on operating expenditure at roughly 14% of the total budget, equivalent to about $1.25 billion based on current projections. Without intervention, operating costs were expected to rise to around 18% by the end of the decade, Reuters reported.

The foundation currently employs about 2,375 people. Under the new plan, headcount will fall gradually to around 1,875 by 2030, with the targets reviewed annually. While overall staffing will decline, the organisation said it would continue to hire selectively for critical skills needed to advance its mission.

Mark Suzman, chief executive of the Gates Foundation, said the spending push ahead of the 2045 deadline represented a rare opportunity to drive progress. “Ensuring as much of every dollar as possible flows toward impact is critical to achieving our ambitious goals to save and improve millions more lives over the next 20 years,” he said, according to the foundation’s release cited by Reuters.

The budget overhaul comes amid a challenging global funding environment for development and philanthropy, with governments and donors facing competing priorities. By tightening internal costs, the foundation said it aims to protect programme spending in areas such as global health, women’s health and education, including initiatives involving artificial intelligence in US education.

The job cuts mark one of the most significant restructurings in the foundation’s history and highlight the tension between scaling up philanthropic ambition and managing internal costs. As the organisation moves into its final two decades, investors, partners and employees alike will be watching how effectively it balances impact, efficiency and workforce morale.