The Bill & Melinda Gates Foundation, the world's largest private charitable organisation, has announced plans to reduce its workforce by as many as 500 employees over the next five years. This strategic downsizing comes as the foundation's board implements a strict cap on operational expenses to ensure more funds are directed towards its core global health and poverty missions.
A Strategic Shift to Control Costs
The foundation revealed on Wednesday that it spent a record $9 billion in 2026, significantly increasing its grant-making in response to cuts in government aid. However, moving forward, the board has mandated that operating costs—covering staffing, salaries, facilities, and travel—must not exceed $1.25 billion, or roughly 14% of its total budget.
To meet this target, the organisation will need to cut up to 500 positions from its current headcount of 2,375 by the year 2030. Foundation CEO Mark Suzman told the Chronicle of Philanthropy that the reductions would be incremental and reviewed annually, rather than happening in "a big wave."
"We will do this thoughtfully, carefully, and systematically," Suzman stated. "That 500-person target is a maximum target. I very much hope that we won't have to do it as large as that number." He explained the board's primary concern was rapidly rising expenditures, aiming to dedicate as many resources as possible to those in need.
Context of a High-Profile Divorce and Controversial Associations
This major operational announcement follows last week's revelation that Bill Gates donated nearly $8 billion to his ex-wife Melinda's foundation, Pivotal Philanthropies, in 2024. This payment was part of a larger $12.5 billion agreement made following their divorce, which was finalised in 2021.
Melinda French Gates resigned from the joint foundation in May 2024. While few details of the split are public, she has previously cited her ex-husband's rumoured friendship with the disgraced financier Jeffrey Epstein as a significant factor in their separation.
Epstein's connection to Gates was thrust back into the spotlight in December when a photograph of the two men emerged in evidence from the late sex offender's estate. Further images showed Epstein kept a framed photo of Gates in his private island mansion.
Future Focus and a Planned Wind-Down
Despite the staff reductions, the Gates Foundation intends to ramp up spending on key program areas. These include women's health, vaccine development, polio eradication, artificial intelligence (AI), and US education.
This restructuring occurs against the backdrop of Bill Gates's long-term philanthropic pledge. In May, he announced plans to give away "virtually all" of his $200 billion fortune within the next 20 years, leaving just 1% for himself and his three adult children. He has vowed to shutter the Gates Foundation entirely by 31 December 2045, marking the end of a defining chapter in modern philanthropy.
The coming years will therefore see the foundation navigating a delicate balance: increasing its charitable impact while simultaneously reducing its operational footprint and ultimately preparing for its own cessation.
