The Gates Foundation announced on Wednesday that it will spend a record $9 billion in 2026 to maximize spending in key areas such as global health. At the same time, it will begin reducing the number of staff positions by up to 500 over five years. The announcement follows last year’s surprise decision to close the foundation in 2045.
The planned layoffs mark another major shift for one of the world’s largest and most influential foundations, which now has many of its long-term priorities, such as tackling poverty and improving global health, undermined by the Trump administration’s cuts to U.S. government spending.
Bill Gates said last year that the foundation would $200 billion spent for the next 20 years and then ended up as part of his plan to give away most of his wealth. This week, he and other members of the foundation’s board of directors approved the largest budget in the foundation’s history, surpassing last year’s budget $8.74 billion. With the new funding, the foundation will increase its budget for several programs, including women’s health, vaccine development, polio eradication, artificial intelligence, and American education.
The board also approved a proposal to limit operating costs, including staff, salaries, infrastructure, facilities and travel required to run the organization, to no more than $1.25 billion, or approximately 14% of the foundation’s budget. To achieve this goal, funders will eliminate up to 500 positions from 2,375 staff positions by 2030, including some vacant positions that may not yet be filled. Foundation CEO Mark Suzman told the Chronicle of Philanthropy that efforts to reduce staff and other expenses will be gradual and reviewed annually, rather than “one big wave.”
“We’re going to do this thoughtfully, carefully and systematically,” he said. “We recalibrate every year. The 500-person goal is the maximum goal. I very much hope we don’t have to do that big of a number.”
Be careful with your money
Suzman said he and other board members believed the operating cost cap was necessary. Suzman said that if left unchecked, the foundation’s operating expenses currently account for about 13% of the budget and are expected to be closer to 18% by the end of the decade. He said the board wants to ensure the foundation spends its money prudently and focuses on maximizing the dollars spent and resources provided to the people the foundation serves.
The Gates Foundation is also the largest foundation in the world to decide to close, and many in the philanthropic community are wondering how its leaders will plan for an exit strategy, said Elizabeth Dyer, acting executive director of the Center for Philanthropy at Grand Valley State University and chair of family philanthropy at the Frey Foundation. She works with about 20 foundations that are spending their endowments. Dell said ahead of the release of new budget and staffing details that ending a foundation with the Gates Foundation’s vast wealth is unprecedented and may require strong strategic planning.
“My sense is that they’ve really tried hard over the past year to focus on their priorities and their strategy,” she said.
what’s next
As the United States and other countries cut humanitarian aid last year, much of the foundation’s core work and achievements over the past few decades have been affected, making philanthropic support even more important. in the most recent blog postBill Gates noted that “the world went backwards” in child deaths last year, with the number of child deaths rising for the first time this century, from 4.6 million in 2024 to 4.8 million in 2025.
“The next five years will be tough as we try to get back on track and work to scale new life-saving tools,” Gates wrote. “But I remain optimistic about the long-term future.” To address this regression, the foundation expects to accelerate spending over the next two decades in three priority areas: maternal and child health, infectious disease prevention and poverty reduction, Suzman said. Over time, some increases in grant sizes are expected, but not across the board.
In the same article, Gates also discussed the challenges posed by artificial intelligence, warning that without more attention being paid to how AI is developed, managed and deployed, the technology could disrupt the job market and be abused by “bad actors.”
Gates, meanwhile, has been an advocate for the adoption of artificial intelligence. The foundation was among a coalition of funders that committed funding last July US$1 billion Provides grants and investments to help develop artificial intelligence tools for America’s public defenders, social workers and other frontline workers over the next 15 years. Suzman noted that artificial intelligence is one area of the foundation’s portfolio that will continue to expand.
The foundation is also expanding its footprint in India and Africa. earlier this week it Announce New Africa and India office divisions established. Staff on the HIV and tuberculosis teams at the Gates Foundation’s headquarters in Seattle will also be cut, he said, as work is largely moved to offices in Africa.
There are still 20 years left
Although the foundation has announced plans to close, Suzman continues to remind people inside and outside that 20 years is still a long time for the Gates Foundation to operate and make an impact.
“I think we’re entering the most influential period in the history of the Gates Foundation,” he said. “We’ve learned a lot over the past quarter-century. We’ve built expertise, credibility and partnerships. We now have a set of goals that allow us to be even more focused.”
____
Stephanie Beasley is Director of Fellowship and Senior Writer at The Chronicle of Philanthropy, where you can read full text. This article was provided to The Associated Press by The Chronicle of Philanthropy as part of its coverage of philanthropic and nonprofit partnerships supported by the Lilly Endowment. The Chronicle is solely responsible for the content. For all of AP’s charity coverage, visit https://apnews.com/hub/philanthropy.