The International Committee of the Red Cross, one of the largest humanitarian organizations in the world, announced on Tuesday April 4 that it will cut around 1,500 jobs for lack of sufficient funds. The board of directors of the ICRC, which employs 20,000 people in more than 100 countries, also endorsed a reduction of 430 million Swiss francs in cost reductions over 2023 and the start of 2024.
“As overseas humanitarian aid budgets are expected to decline over the next two years, the ICRC will need to more deliberately direct its efforts to programs and places where we can have the greatest impact”underlines the press release of the organization whose headquarters stands on the heights of Geneva.
Limitation of dismissals
The ICRC had initially launched an appeal to its donors for 2.8 billion euros, but like many charities, it must note that generosity is falling, in particular because of the very significant funds devoted by its allies to help Ukraine push back Russia. He revised his budget to 2 billion francs.
Regarding job cuts over the next 12 months, the ICRC wants to limit layoffs as much as possible by introducing a hiring freeze and betting on natural departures.
Donation gap
At least 20 of the 350 sites currently piloted by the ICRC around the world will close, “for example where the area may be covered by another ICRC office or where other humanitarian or development partners may take over”. “We will also reduce and close some of our programs”added the ICRC, without detailing them.
“We will first share information about these changes with the people they impact the most, such as affected communities, stakeholders and staff”explained the Committee.
While the Committee stresses that it is not uncommon for its appeals for funds not to be fully covered at the beginning of the year, it stresses that this year things are a little different.
“This year, we face simultaneous challenges”explains the organization, citing end-of-year pledges that did not reach the expected level and a higher than expected cost increase in the last quarter of 2022 due to inflation. “Due to these factors, we started 2023 with a deficit of around 140 million” euros, he says.