Thousands of Jobs Cut in Global Aid Sector Due to US Funding Freeze: What It Means for Crisis Response

Major Job Cuts in the Aid Sector

Some of the world’s largest aid organisations are facing significant job cuts as a result of US President Donald Trump’s freeze on overseas aid, which could potentially decimate the sector’s ability to respond to future crises.

Among the organisations announcing job losses are the International Rescue Committee, Danish Refugee Council, and Norwegian Refugee Council. Additionally, Catholic Relief Services has alerted its staff to potential layoffs, while Save the Children is reviewing its budget amidst fears of cuts.

Impact on Humanitarian Efforts

The International Rescue Committee (IRC) has over 17,000 global staff and is anticipating a significant reduction in US government support for its programs this fiscal year. David Miliband, the IRC's CEO, noted that senior staff would face a 20% pay cut as they grapple with the financial fallout.

Since Trump’s announcement of a 90-day freeze on much of the US’s $72 billion spending, reports indicate hundreds of humanitarian projects have closed across more than 200 countries. Nearly all of USAid's 10,000 staff have been affected, with many placed on leave or let go.

A recent report by the International Council of Voluntary Agencies (ICVA) revealed that 55% of surveyed organisations had to reduce their workforce. This includes roles across all levels, from coordination and advocacy to field workers in communities and refugee camps.

The Long-Term Consequences

Experts warn that the job cuts represent “the tip of the iceberg”, as local NGOs relying on larger aid groups face severe resource limitations. The loss of staff translates not only to job losses but also to a loss of expertise, institutional knowledge, and networks essential for effective aid delivery.

The report highlights that the ongoing cuts could render the humanitarian sector incapable of responding to future crises effectively. With many organisations owed millions by USAid, uncertainty looms over their ability to continue vital work in communities.

Conclusion

The situation underscores the urgent need for clear communication regarding funding and the sustainability of humanitarian efforts moving forward.