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Gates Foundation shut down begins: $9bn outlay, 500 jobs to go; closure set for 2045

The Bill & Melinda Gates Foundation, one of the world's most influential philanthropic organizations, is embarking on a bold new phase with plans to shut down by 2045. This decision follows Bill Gates' announcement last year to accelerate the wind-down, committing to spend roughly $200 billion over the next two decades. As part of this strategy, the foundation has approved a record $9 billion budget for 2026 while capping operating costs and targeting up to 500 job cuts by 2030.

Understanding the Gates Foundation's Sunset Plan

Founded in 2000 by Bill Gates and his then-wife Melinda French Gates, the foundation has disbursed over $100 billion in grants focused on global health, poverty alleviation, and education. Now, with an endowment of around $86 billion as of July 2025 and Gates' personal fortune at $104.1 billion, the organization aims to double its giving. Gates has decided to return his wealth to society faster than originally planned, setting a firm closure date of December 31, 2045.

This shift comes after rethinking the foundation's original charter, which envisioned a sunset decades after the founders' deaths. Gates, with board input, believes they can achieve goals on a shorter timeline by doubling down on key investments. The plan provides certainty to partners and enables transformative progress in the remaining 20 years.

Record $9 Billion Budget for 2026

The foundation's board recently greenlit its largest-ever annual budget of $9 billion, surpassing last year's $8.74 billion. This increase targets critical areas amid worsening global health indicators, such as a rise in child deaths for the first time in two decades. Key boosts include:

• Women's health programs
• Vaccine development and polio eradication
• AI tools for public-sector workers and U.S. education
• Maternal and child health
• Infectious disease prevention
• Poverty reduction

Bill Gates noted the challenges ahead: "The next five years will be difficult as we try to get back on track and work to scale up new lifesaving tools." Despite setbacks from cuts in international aid by governments like the U.S., U.K., and France, he remains optimistic about long-term gains.

Job Cuts and Cost-Cutting Measures

To support this aggressive spending, the foundation is tightening its belt on operations. The board capped annual operating costs at $1.25 billion, or about 14% of the total budget—down from a projected 18% by 2030 without changes. Currently employing 2,375 staff, the organization plans to reduce headcount by up to 500 roles by 2030.

CEO Mark Suzman emphasized a thoughtful approach: "We will do this thoughtfully, carefully, and systematically… 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." Reductions will be gradual, including leaving positions unfilled, cuts to travel and facilities, and winding down specific programs like Inclusive Financial Services and Early Learning.

Suzman views this as entering the foundation's most impactful period: "We’ve learned a huge amount over the last quarter century. We’ve built expertise, credibility, and partnerships." Salaries and benefits for remaining staff remain unaffected.

Strategic Shifts in Operations

Beyond staff reductions, the foundation is expanding in high-priority regions. A new division focuses on Africa and India, with HIV and tuberculosis work shifting from Seattle to Africa. AI investments continue to grow, including a $1 billion coalition pledge for public-sector tools, even as Gates warns of its risks.

Historically, the foundation has driven massive impact: co-creating Gavi and the Global Fund, which saved over 80 million lives; partnering on polio eradication; and developing a rotavirus vaccine that cut child diarrhea deaths by 75%.

Why the 2045 Closure Matters for Philanthropy

Bill Gates' move sets a precedent for billionaires. As a Giving Pledge co-founder, he urges faster, more urgent giving. Analyst Benjamin Soskis highlights its significance: the foundation's data-driven, professionalized model has influenced global philanthropy. Closing it requires unprecedented spending levels, potentially doubling the current $9 billion annually, and reshapes norms in an era of super-wealth.

Gates stresses partnerships are essential: "None of this progress is possible without partnership from governments." Philanthropy alone can't fill gaps from aid cuts, like those needed for polio eradication.

Challenges from Global Aid Cuts

Many focus areas face headwinds from U.S. government reductions under recent administrations, pressuring global health, poverty, and education efforts. The foundation's acceleration aims to counter this, but success hinges on renewed public funding.

Future Impact and Legacy

With two decades left, Suzman affirms: "We are moving into what I believe is going to be the most impactful period of the Gates Foundation." Plans include larger grants in priority areas and leveraging 25 years of expertise for focused outcomes.

This sunset strategy maximizes efficiency, directing more funds to causes over overhead. By 2045, after spending over $200 billion from endowment and Gates' contributions, the foundation will close, leaving a legacy of lives saved and systems transformed.

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Key Takeaways

• $9 billion 2026 budget accelerates spending on health, AI, and poverty.
• Up to 500 jobs cut by 2030 to cap costs at 14% of budget.
• Full closure by 2045 after $200+ billion in total spending.
• Expansion in Africa/India; gradual, reviewed reductions.
• Reliance on government partnerships amid aid cuts.

This pivotal moment underscores the Gates Foundation's commitment to urgency and impact, redefining philanthropic endpoints for generations.

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