Gates Foundation to cut up to 20% jobs by 2030, review ties with Epstein

The Bill & Melinda Gates Foundation said it will cut up to 20 per cent of its workforce by 2030 and conduct an external review of its past engagement with convicted sex offender Jeffrey Epstein, amid heightened scrutiny over governance and reputational risk.

The restructuring plan, reported by The Wall Street Journal on Tuesday, is expected to reduce the foundation’s staff by up to 500 positions over the coming years as it seeks to tighten operating costs and align spending with long-term mission priorities.

Responding to Firstpost's queries on jobs cut report, Gates Foundation said the announcements reported by the journal were not new. They were part of an internal update from CEO Mark Suzman to employees on operational matters, it said.

Gates Foundation, however, didn't respond to queries about the impact of its layoff plans on India operations. The story will be updated when a response comes.

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In a statement on January 14, the foundation said the move was aimed at ensuring greater efficiency as it worked toward deploying its endowment more effectively in areas such as global health, education and poverty reduction.

The foundation, which has a projected 2026 budget of about $9 billion and an endowment of roughly $86 billion, is on track for a planned closure in 2045 after committing to spend around $200 billion over its lifetime.

Cost cap drives restructuring

At the centre of the overhaul is a cap on annual operating expenses, which will be limited to $1.25 billion, or about 14 per cent of the total budget. The aim, according to the foundation, is to channel a larger share of resources directly into programmes rather than administrative costs.

Without intervention, operating expenses were projected to rise to nearly 18 per cent of total spending by the end of the decade.

Under the plan, the organisation’s workforce of about 2,375 employees is expected to be reduced by up to 500 positions by 2030. An initial phase will see around 200 roles cut by the end of 2027.

“This is a challenging time for our organisation in many ways, but it also highlights the critical importance of taking the tough actions now,” Chief Executive Officer Mark Suzman said in a memo cited by The Wall Street Journal.

External review of Epstein ties

Alongside the cost-cutting measures, the foundation has launched an external review into its past engagement with Jeffrey Epstein and its processes for vetting philanthropic partnerships.

The review, first disclosed in internal communications and later confirmed publicly, was commissioned with the approval of the governing board and chair Bill Gates. It is already underway and is expected to publish findings later this year.

A recent board meeting in London reportedly also discussed the reputational and governance implications of the US Justice Department’s Epstein-related files.

Reputational pressure and governance shifts

The review comes amid continued scrutiny of Bill Gates’ past association with Epstein. Gates has previously said he regretted his interactions and maintained that he did not participate in any criminal activity linked to Epstein.

Epstein, who died in 2019, had maintained links with several high-profile individuals before being charged with sex trafficking and convicted for the same.

The foundation said the review will also examine internal policies governing external partnerships and due diligence processes.

Donor uncertainty

The developments come at a time of broader transition for the foundation, which has seen changes in its governance structure in recent years, including the departure of co-founder Melinda French Gates and investor Warren Buffett from its board.

Buffett has previously said he was unaware of the full extent of Gates’ association with Epstein and has signalled uncertainty over future contributions.