The International Committee of the Red Cross (ICRC) has announced major cutbacks in response to a worsening global funding crisis, revealing plans to cut its 2026 budget by 17% and eliminate nearly 2,900 positions. This marks one of the most significant retrenchments in the organization's history as it confronts shrinking donor support amid escalating global emergencies.

ICRC President Mirjana Spoljaric confirmed the decision after a meeting of the organization's assembly, stating that the cuts are essential to preserve frontline operations in conflict areas.

The organization aims to reduce its budget to 1.8 billion Swiss francs (around $2.2 billion), with job losses affecting approximately 15% of its 18,500 global staff. About 200 of the cuts will impact positions at its Geneva headquarters, the birthplace of the Red Cross in 1863.

Nearly 3,000 jobs cut

The ICRC said one-third of the job reductions would occur through voluntary departures or leaving positions unfilled. The restructuring also involves merging departments to boost efficiency.

Despite the reduced budget, the organization pledged to maintain its presence in high-risk conflict zones such as Sudan, Ukraine, occupied Palestine, and the Democratic Republic of Congo.

"The ICRC remains committed to working on the front lines of conflict, where few others can operate," Spoljaric said. "But the financial reality is forcing us to make difficult decisions to ensure we can continue to deliver critical humanitarian assistance to those who need it most."

In response to reduced funding, the ICRC is narrowing its operational focus to areas with the most urgent humanitarian needs. Its core services, including aid delivery and prisoner of war visits, will continue in over 90 countries. Recently, the ICRC facilitated captive-detainee swaps between Palestinian Resistance factions and "Israel" under an October 10 ceasefire.

Donor fatigue, geopolitical shifts fuel crisis

The cuts come following what the ICRC describes as a "financial crisis of unprecedented proportions," affecting humanitarian organizations globally. The United States, historically the ICRC's largest donor, has dramatically reduced its foreign assistance under President Donald Trump's "America First" agenda.

In early 2025, the Trump administration froze foreign aid for review and subsequently slashed more than 90% of USAID's multiyear contracts, resulting in a $54 billion cut.

Other traditional donors, like Britain, Germany, and France, have also decreased their Official Development Assistance (ODA) budgets. The US, UK, France, and Germany collectively contribute the majority of global humanitarian funding, and are simultaneously cutting aid for the first time in decades.

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Broader impact on the humanitarian sector

The ICRC's downsizing is part of a larger wave of cuts hitting aid agencies. The World Food Programme, UNHCR, UNICEF, WHO, and Save the Children have all announced major budget reductions in 2025. As of mid-year, global humanitarian appeals were only 26.8% funded, with $12.14 billion raised against a $45.37 billion target. 

UNICEF, for example, is relocating 70% of its Geneva and New York staff to lower-cost locations, while UNHCR is closing its Southern Africa bureau and cutting 4,000 jobs.

Soaring global military spending contrasts with humanitarian cutbacks

While humanitarian funding declines, defense budgets are surging. The United States allocated nearly $1 trillion to defense in 2024, and Germany approved a record increase to reach $88.5 billion, making it the fourth-largest global military spender. The UK, France, and Poland have all committed to sharp increases in military spending, often funded by cuts to aid budgets.

At a 2025 summit, NATO members (except Spain) committed to boosting defense spending to 5% of GDP by 2035. This shift has triggered widespread concern about a growing global preference for militarization over humanitarian support.