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WHO faces $500m salary shortfall, implement several cost-cutting strategies

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    Dr. Tedros Ghebreyesus, Director General (DG) of the World Health Organization (WHO), has revealed that the organization is facing a salary funding gap of over $500 million for the upcoming two-year budget period.

    He confirmed this during the high-level opening of the 78th World Health Assembly  held on Monday, May 19 in Geneva, Switzerland under the theme ‘One World for Health.’

    He mentioned that to address this shortfall, the WHO is implementing several cost-saving measures across various areas, including travel, procurement, hiring, early retirement, and more.

    The World Health Assembly which serves as WHO’s top decision-making forum and brings together delegations from all member states to discuss key health priorities.

    Although WHO has achieved many significant milestones, Dr. Ghebreyesus emphasized the financial challenge posed by the salary gap.

    He said, “This week, I ask you to approve the next increase, to make another step towards securing the long-term financial sustainability and independence of your WHO.

    “Already, the first increase has made a huge difference.

    “If it had not happened, our current financial situation would be much worse – $300 million worse.

    “Even so, we are facing a salary gap for the next biennium of more than $500 million.

    “The Secretariat has taken a range of measures to curtail costs in travel, procurement, recruitment, early retirement and more.

    “These measures have helped to narrow the gap, but still, there is no alternative but to reduce the size of our workforce.

    “We are doing this reduction carefully, to protect the quality of our work, and ensure that we are positioned to emerge from this crisis stronger, more empowered and more independent.

    “As you know, we have been engaging in a major structural realignment, guided by an in-depth analysis of priorities, deliberate and conscious.”

    Dr.Ghebreyesus also explained that, as part of efforts to streamline operations, the organization has undergone a restructuring process.

    This includes reducing the executive management team from 14 to 7 members and consolidating departments from 76 to 34.

    Adding that, “Some Member States called the new structure ‘lean and mean’.

    “I think it’s more focused and it could be more impactful as well.

    “Last week, I announced our new executive management team, and in the coming weeks, we will decide which directors will lead which departments. 

    “This was an extremely difficult decision for me, as it is for every manager in our organisation who is having to decide who stays, and who goes.”

    The DG of the WHO also expressed his gratitude to the outgoing executive team members whose names are: Dr. Mike Ryan, Dr. Samira Asma, Dr. Bruce Aylward, Dr. Catharina Boehme, Dr. Li Ailan, and Dr. Jérôme Salomon for their commitment and service.

    “Let’s be clear: a reduced workforce means a reduced scope of work.

    “The Organisation simply cannot do everything Member States have asked it to do with the resources available.

    “This week, you will consider a reduced programme budget of $4.2 billion for the 2026-2027 biennium.

    “This represents a 21 per cent reduction on the original proposed budget of $5.3 billion.

    “Assuming you approve the increase in assessed contributions, and thanks to the Investment Round, we are confident that we have already secured more than $2.6 billion, or 60 per cent of the funding for the next biennium.

    “That leaves an anticipated budget gap of more than $1.7 billion.

    “We know that in the current landscape, mobilising that sum will be a challenge,” he concluded.

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