The Gates Foundation will spend a record $9 billion this year while cutting up to 500 jobs over the next five years, as the world’s largest private foundation accelerates plans to wind down operations.
The move is part of the foundation’s decision to spend down its endowment and close by December 31, 2045, shifting resources more aggressively toward global health, poverty reduction and education rather than maintaining long-term institutional operations. The strategy reflects a growing belief among some major philanthropists that urgent global challenges require faster, time-bound giving.
The foundation’s board approved the $9 billion budget, the largest in its 25-year history, less than a year after founder Bill Gates announced plans to distribute roughly $200 billion over two decades. Gates, a signatory to The Giving Pledge, has committed to giving away about 99 percent of his wealth, describing the accelerated timeline as a response to “pressing” global problems that cannot wait for traditional philanthropic models.
Since its launch, the Gates Foundation has distributed more than $100 billion, becoming one of the most influential funders in global health, vaccine development, poverty alleviation and U.S. K-12 education. For 2026, the board also approved increased funding across several programme areas, including women’s health and the use of artificial intelligence in U.S. education.
To meet its 2045 deadline while expanding grantmaking, the foundation will reduce its workforce by about 20 percent, cutting up to 500 positions from its current staff of roughly 2,375 by 2030. The reductions will occur through a combination of attrition and layoffs, according to a January 14 press release.
The board also approved a cap on operating expenses, limiting overhead costs such as salaries, infrastructure, facilities and travel to no more than $1.25 billion, or about 14 percent of the total budget. The goal is to redirect more resources from administration into grants.
“While progress is possible, it remains fragile,” said Mark Suzman, chief executive officer of the Gates Foundation. “Delivering on our mandate requires disciplined stewardship of the foundation’s finite resources.” He noted that staffing reductions will be gradual and reviewed annually rather than implemented in a single wave.
The decision places the Gates Foundation firmly among a growing group of “time-limited” philanthropies, led by donors who argue that accumulating capital indefinitely is ineffective in addressing today’s urgent social and economic challenges. Another prominent example is philanthropist MacKenzie Scott, who has donated $26 billion to thousands of organisations since 2020, often providing unrestricted funding to groups affected by public funding shortfalls.
As the Gates Foundation moves toward its sunset, questions remain about who will fill its outsized role in global development funding, particularly in areas such as public health and education where it has long been a dominant force.
