Bill Gates has started putting in place the first major steps toward closing the Bill & Melinda Gates Foundation, one of the world’s most-influential philanthropic organisations. The foundation recently announced that it will spend a record $9 billion in 2026, its highest annual budget so far, while also preparing to cut up to 500 staff positions over the next five years. According to a Fortune report, these moves follow Gates’ decision last year to formally wind down the foundation by 2045, after spending roughly $200 billion over two decades.The latest plan marks a significant shift for the foundation at a time when many of its long-term focus areas — including global health, poverty, and US education — are under pressure due to cuts in international aid.

Gates Foundation to cut up to 500 jobs by 2030

The foundation’s board has approved a cap on operating costs, limiting them to $1.25 billion a year, or about 14% of its budget. To meet that limit, the organisation will reduce its workforce from the current 2,375 roles, including by leaving some positions unfilled.Foundation CEO Mark Suzman said the reductions will be gradual:“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.”Suzman said operating costs were projected to reach 18% by 2030 if no action was taken.

Record spending planned as global health indicators worsen

The $9 billion budget for 2026 includes increases for programmes focused on women’s health, vaccines, polio, AI tools, and education. Gates recently wrote that global health indicators slipped last year, noting that child deaths increased for the first time in two decades.“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. Still, he said he remains optimistic about long-term progress.The foundation plans to accelerate spending in three key areas:• maternal and child health• infectious disease prevention• poverty reductionNotably, Gates has repeatedly warned about risks from artificial intelligence (AI) but is also investing in its development. The foundation joined a coalition pledging $1 billion toward AI tools for public-sector workers in the U.S.AI remains one of the programmes that will continue to grow, Suzman confirmed.The foundation is also expanding operations in Africa and India, creating a new division focused on the two regions. Work on HIV and tuberculosis will increasingly shift from Seattle to Africa.Despite its planned closure, Suzman said the foundation still has two decades to operate and aims to make its most significant impact during that time.“We are moving into what I believe is going to be the most impactful period of the Gates Foundation,” he said.