The Bill & Melinda Gates Foundation has initiated its first major steps toward a planned closure. This influential philanthropic organization recently revealed significant changes to its operations.
Record Spending Amid Staff Reductions
The foundation announced it will spend a record $9 billion in 2026. This represents its highest annual budget to date. At the same time, the organization plans to cut up to 500 staff positions over the next five years.
These moves follow Bill Gates' decision last year to formally wind down the foundation by 2045. The foundation has spent approximately $200 billion over the past two decades.
Operating Cost Cap Implemented
The foundation's board approved a cap on operating costs. They will limit these expenses to $1.25 billion annually, which is about 14% of the budget. To meet this limit, the organization will reduce its workforce from the current 2,375 roles.
Some positions will remain unfilled as part of this reduction strategy. Foundation CEO Mark Suzman emphasized the gradual nature of these changes.
"We will do this thoughtfully, carefully, and systematically," Suzman stated. "We'll be recalibrating it every year. That 500-person target is a maximum target. I very much hope that we won't have to do it as large as that number."
Suzman explained that operating costs would reach 18% by 2030 without intervention. The new cap aims to control these expenses effectively.
Increased Focus on Key Program Areas
The $9 billion budget for 2026 includes funding increases for several important programs. These focus on women's health, vaccines, polio eradication, AI tools, and education initiatives.
Bill Gates recently noted that global health indicators slipped last year. Child deaths increased for the first time in two decades, highlighting ongoing challenges.
"The next five years will be difficult as we try to get back on track and work to scale up new lifesaving tools," Gates wrote. He expressed optimism about long-term progress despite current difficulties.
Three Priority Areas Identified
The foundation plans to accelerate spending in three key areas:
- Maternal and child health programs
- Infectious disease prevention efforts
- Poverty reduction initiatives
Notably, Gates has repeatedly warned about risks from artificial intelligence. However, the foundation continues investing in AI development. It recently joined a coalition pledging $1 billion toward AI tools for public-sector workers in the United States.
Suzman confirmed that AI remains one of the programs that will continue growing. The foundation recognizes both the potential and risks of this technology.
Geographic Expansion Continues
The foundation is expanding operations in Africa and India. It created a new division focused specifically on these two regions. Work on HIV and tuberculosis will increasingly shift from Seattle to Africa.
This geographic realignment reflects the foundation's commitment to addressing health challenges where they are most acute.
Two Decades of Impact Remaining
Despite the planned closure by 2045, Suzman emphasized that the foundation still has two decades to operate. He believes this period will be particularly impactful for the organization's work.
"We are moving into what I believe is going to be the most impactful period of the Gates Foundation," Suzman said. The foundation aims to maximize its influence during these remaining years.
The restructuring comes at a challenging time for many of the foundation's focus areas. Global health, poverty reduction, and US education initiatives face pressure from cuts in international aid.
The Bill & Melinda Gates Foundation continues adapting its strategy while maintaining its core mission. These changes represent a significant shift for one of the world's most influential philanthropic organizations.
