Bill Gates Foundation Cuts Staff and Announces $9 Billion Budget Amid Plan to Dissolve by 2045

The Bill & Melinda Gates Foundation announced on Jan. 14, 2026, that it will cut up to 500 staff positions over the next five years as it prepares for its planned dissolution in 2045. The foundation also revealed a record $9 billion annual budget for 2026, a significant increase from its 2025 spending.

The decision to reduce staff is part of a broader strategy to reallocate resources toward mission-driven programs. Foundation CEO Mark Suzman said the move will allow the organization to focus more intently on high-impact initiatives and ensure operational costs remain controlled.

The foundation aims to maximize its spending by accelerating efforts in global health, education, and poverty reduction. This includes a focus on maternal and child health, infectious disease prevention, and AI applications for public service.

Why the Move Happened

The foundation announced last year that it will spend $200 billion over the next two decades before shuttering. This move is part of Bill Gates's commitment to giving away the majority of his wealth.

With operating expenditures projected to increase to nearly 18% of the budget by the end of the decade, the board decided to cap such costs at 14%. Suzman said the reduction will help preserve the foundation's financial flexibility while ensuring that the majority of funds go directly toward programs.

How the Foundation Plans to Maximize Spending

The foundation is focusing its resources on three primary areas: eradicating preventable causes of death, eliminating deadly infectious diseases, and reducing global poverty.

Approximately 70% of the budget is allocated to global health, with the remaining funds directed toward education in the U.S. and agriculture in low- and middle-income countries.

Suzman emphasized that the foundation has a clear timeline and a set of priorities. The 20-year plan, which doubles the foundation's spending from its first 25 years, is expected to allow the organization to make transformative progress before closing according to the foundation's announcement.

The board also approved a new operating division to oversee operations in Africa and India, while some U.S.-based teams will shrink as responsibilities shift to international offices as reported by The Globe and Mail.

Global Health and Philanthropy Implications

The foundation's decision comes amid a challenging global health landscape, with rising child mortality rates due to humanitarian aid cuts.

Gates acknowledged that the next five years will be difficult as the world works to reverse recent setbacks in child health outcomes. However, he remains optimistic about the long-term impact of the foundation's investments according to Gates' statement.

The foundation also plans to expand the use of artificial intelligence in public service, having already pledged $1 billion in grants for AI tools to support frontline workers in the U.S..

Analysts in the philanthropy sector have noted that the Gates Foundation's decision to sunset its operations is unprecedented. Elizabeth Dale, an expert in philanthropy, said the foundation's approach reflects a strategic and deliberate effort to maximize its impact.