The World Health Organization (WHO) is set to slash its budget by 21% following the United States' decision to withdraw, forcing the global health body to reduce its workforce and operational reach, WHO Director-General Tedros Adhanom Ghebreyesus said in an internal email obtained by AFP on Saturday.

With the US halting its contributions and other nations redirecting funding toward defense spending, WHO now faces a $600 million shortfall in 2025, Tedros warned in the message sent to UN health agency staff.

Impact of US withdrawal

After returning to the White House in January, President Donald Trump not only triggered the US pullout from WHO but also froze nearly all US foreign aid, including funds supporting global health programs.

The United States had been the WHO’s largest donor, contributing $1.3 billion to the 2022-23 budget, accounting for 16.3% of its total funding. Most of that funding came through voluntary contributions earmarked for specific programs, rather than fixed membership fees.

"Dramatic cuts to official development assistance by the United States and others are causing massive disruptions to countries, NGOs, and United Nations agencies, including WHO," Tedros wrote.

WHO budget cut to $4.2 billion

WHO’s executive board had initially proposed a $5.3 billion budget for the 2026-2027 cycle but lowered it to $4.9 billion last month due to financial pressures.

However, the worsening outlook for global development assistance has forced a further reduction to $4.2 billion, marking a 21% cut from the original proposal.

"Despite our best efforts, we are now at the point where we have no choice but to reduce the scale of our work and workforce," Tedros said, adding that layoffs will begin at WHO headquarters before impacting regional offices worldwide.

While WHO has already implemented cost-saving measures, securing new financial resources remains a challenge, he noted, citing geopolitical instability and economic constraints as key obstacles.

WHO implements hiring freeze

The WHO implemented a hiring freeze, halted investments, and reduced non-essential travel following US Trump's decision to withdraw the US from the organization, Bloomberg reported.

The US withdrawal "has made our financial situation more acute," Tedros wrote in an email to staff dated Jan. 23, as reported by Bloomberg. He outlined plans for "cost reductions and efficiencies." Meanwhile, a WHO spokesperson confirmed the authenticity of the email.

Tedros stated that procurement cuts are also under consideration, including renegotiating major contracts and limiting IT equipment replacements.

The measures are preliminary, Tedros asserted, noting that additional steps may follow. He emphasized the organization’s efforts to secure new funding, including through the WHO Foundation, which aims to attract financing from a broader range of sources, such as businesses and the public.