SEATTLE, Washington: As it prepares for a two-decade wind-down, the Gates Foundation is accelerating spending even as it moves to slim down its workforce, signaling a sharper focus on impact as it heads toward closure.

The foundation said this week it will spend a record US$9 billion in 2026, its largest annual budget to date, while beginning a gradual reduction of staff positions by as many as 500 over the next five years. The moves follow last year's unexpected announcement that the foundation plans to shut down entirely in 2045.

The planned layoffs represent another major shift for one of the world's largest and most influential philanthropic organizations, at a time when many of its long-standing priorities — including poverty reduction and global health — have been strained by cuts in U.S. government spending under the Trump administration.

Bill Gates said last year that the foundation would spend $200 billion over the next 20 years before closing, as part of his plan to give away most of his wealth. This week, Gates and other board members approved the largest budget in the foundation's history, exceeding last year's $8.74 billion. The expanded budget boosts funding for programs including women's health, vaccine development, polio eradication, artificial intelligence, and U.S. education.

At the same time, the board approved a proposal to cap operating costs — covering staff, salaries, infrastructure, facilities, and travel — at no more than $1.25 billion, or about 14 percent of the total budget. To meet that target, the foundation plans to cut up to 500 of its 2,375 positions by 2030, including some currently unfilled roles.

The reductions will be carried out gradually and reviewed each year rather than happening all at once, foundation chief executive Mark Suzman said in an interview with the Chronicle of Philanthropy.

"We will do this thoughtfully, carefully, and systematically," he said. "We'll be recalibrating it every year. That 500-person target is the maximum. I very much hope that we won't have to do it as large as that number."

Suzman said the operating cost cap was necessary to prevent expenses from rising too quickly. Without intervention, operating costs — currently about 13 percent of the budget — were projected to approach 18 percent by the end of the decade, he said. The board wants to ensure the foundation spends money prudently and directs as many resources as possible to the people it serves.

The Gates Foundation is also the largest foundation in the world to commit to closing, raising questions across the philanthropic sector about how such an unprecedented exit will be managed. Elizabeth Dale, acting executive director and Frey Foundation Chair for Family Philanthropy at Grand Valley State University's philanthropy center, said sunsetting an institution of this size will require careful long-term planning.

"My sense is that they spent the last year really trying to home in on their priorities and their strategy," she said.

Looking ahead, the foundation is expected to accelerate spending in maternal and child health, infectious disease prevention, and poverty reduction, as cuts in humanitarian aid by the United States and other countries have increased the need for philanthropic support. In a recent blog post, Gates wrote that the "world went backwards" last year on child mortality, with deaths rising 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 scale up new lifesaving tools," Gates wrote. "Yet I remain optimistic about the long-term future."

The foundation is also expanding its presence in India and Africa, announcing a new Africa and India Offices Division. Staff working on HIV and tuberculosis in Seattle will be reduced as much of that work shifts closer to affected regions.

Despite the planned closure, Suzman emphasized that the foundation still has significant time to operate.

"We are moving into what I believe is going to be the most impactful period of the Gates Foundation in its history," he said. "We've learned a huge amount over the last quarter century. We've built expertise, credibility, and partnerships. We now have a set of goals that are allowing us to focus with greater intentionality."