The planned layoffs mark another major shift for one of the world’s largest and most influential foundations at a time when many of its long-term priorities, such as addressing poverty and improving global health, have been undermined by cuts in US government spending by the Trump administration.

Bill Gates said last year that the foundation will spend $200 billion for the next 20 years and then shut down as part of his plan to give away the bulk of his fortune. This week, he and other members of the foundation’s board approved the largest budget in the foundation’s history, surpassing last year’s budget of $8.74 billion. With the new dollar amount, the foundation will increase budgets for several programs, including women’s health, vaccine development, polio eradication, AI, and education in the US.

The board also approved a proposal to cap operating expenses — including staff, salaries, infrastructure needed to run the organization, facilities, and travel expenses — at no more than $1.25 billion, or approximately 14% of the foundation’s budget. To achieve that goal, the provider will cut up to 500 of its 2,375 staff positions by 2030, including some open roles that may remain unfilled. The effort to reduce the number of staff along with other expenses will be done incrementally and reviewed annually rather than coming in “one big wave,” foundation CEO Mark Suzman told the Chronicle of Philanthropy in an interview.

“We will do this thoughtfully, carefully, and systematically,” he said. “We recalibrate it every year. That 500 person target is a maximum target. I hope we don’t have to make it as big as that number.”

Spend money wisely

Suzman said he and other board members felt the operating cost cap was necessary. If left unchecked, the foundation’s operating expenses, which are currently about 13% of the budget, are expected to approach 18% by the end of the decade, Suzman said. The board wants to make sure the foundation spends money wisely and with a focus on maximizing the dollars spent and resources provided to the people the foundation serves, he said.

The Gates Foundation is also the world’s largest foundation to decide to close, and many in philanthropy are wondering how its leaders will plan an exit strategy, said Elizabeth Dale, acting executive director and Frey Foundation Chair for Family Philanthropy at Grand Valley State University’s philanthropy center. He works with a group of about 20 foundations that spend their endowments. Sinking a foundation with the Gates Foundation’s wealth is unprecedented and will likely require strong strategic planning, Dale said before releasing the new budget and staffing details.

“My sense is that they’ve spent the last year really working on their priorities and their strategy,” he said.

What’s next?

Many of the core areas of the foundation’s work and success over the past decades have suffered due to humanitarian aid cuts from the United States and other countries last year, making philanthropic support even more critical. Recently blog postBill Gates says that “the world turned around” last year when it comes to child deaths, with the number 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 difficult as we try to get back on track and work to add new life-saving tools,” Gates wrote. “But I remain optimistic about the long-term future.” In an effort to address this backsliding, the foundation is expected to accelerate spending in three priority areas in the next two decades: maternal and child health, infectious disease prevention, and poverty reduction, said Suzman. It’s also expected to increase some grant sizes over time, though not across the board.

In the same post, Gates also discussed the challenges posed by artificial intelligence, warning that the technology could disrupt the job market and be used by bad “bad actors” if more attention is not paid to how it is developed, managed, and deployed.

At the same time, Gates promoted the adoption of AI. The foundation is one of a coalition of funders that in July pledged to offer $1 billion in grants and investments to help develop AI tools for public defenders, social workers, and other frontline workers in the United States over the next 15 years. And, Suzman said, AI is one of the foundation’s portfolio areas that will continue to expand.

The foundation is also expanding its footprint in India and Africa. Earlier this week, it was Office has partnered the creation of the new Africa and India Offices Division. Staffing the HIV and tuberculosis teams at the Gates Foundation headquarters in Seattle will also be reduced as that work is increasingly moved to offices in Africa, he said.

20 more years to go

Even as the foundation announced plans to close, Suzman continued to remind people inside and outside that 20 years was still a significant time for the Gates Foundation to operate and make an impact.

“We are moving into what I believe will be the most impactful time for the Gates Foundation in its history,” he said. “We’ve learned a tremendous amount over the past quarter century. We’ve built expertise, credibility, and partnerships. We now have a set of goals that allow us to focus on greater intentions.”

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Stephanie Beasley is the partnership director and a senior writer for the Chronicle of Philanthropy, where you can read the full article. This article was provided by The Associated Press to the Chronicle of Philanthropy as part of a partnership to cover philanthropy and nonprofits supported by the Lilly Endowment. The Chronicle is solely responsible for the content. For all AP philanthropy members, visit https://apnews.com/hub/philanthropy.