The U.S. Agency for International Development (USAID) has started the process of laying off thousands of employees. This restructuring decision is expected to lead to the dismissal of a significant number of workers, with a report from USAID indicating that around 1,600 employees in the United States alone may lose their jobs.
The announcement of the mass layoffs follows an order from the U.S. government that all non-essential USAID employees, except for those involved in mission-critical functions, core leadership, and certain designated programmes, will be placed on administrative leave.
USAID, a key agency that has been responsible for managing the U.S. government’s foreign aid and development programmes, has stated that it will organise fully-funded flights for its overseas personnel to return to their home countries. This will allow staff to continue accessing the agency’s systems and diplomatic channels until they are able to travel back.
USAID is a major U.S. government agency responsible for administering foreign aid programmes around the world. For decades, it has played a significant role in providing humanitarian assistance, promoting economic development, and supporting democracy-building efforts in developing countries.
However, under the leadership of President Donald Trump, there has been a notable shift in U.S. foreign policy. The Trump administration has consistently expressed scepticism about international aid, with some officials even advocating for reducing the U.S. role in foreign assistance altogether.
Trump’s administration has been known for its ‘America First’ approach, which prioritises U.S. interests over global cooperation. As part of this strategy, the president has pushed for deep cuts to foreign aid spending. USAID, being a key agency responsible for managing this aid, has become a target for restructuring.
On Sunday, USAID confirmed that all direct hire personnel, excluding those in leadership positions or working on critical functions, will be placed on administrative leave. The agency explained that a “Reduction-in-Force” (RIF) process would be initiated, with approximately 1,600 employees in the U.S. expected to be affected.
“This is a difficult decision, but it is necessary for the future direction of the agency,” said a spokesperson for USAID. “We will continue to support our staff during this transition period and help them with re-entry into their home countries.”
The layoff is expected to have a wide-reaching impact, both within the agency and on the global stage. USAID has traditionally been one of the U.S. government’s largest employers in the foreign aid sector, and the layoffs will drastically reduce its operations worldwide. This could affect various aid projects, including humanitarian relief, development programs, and the U.S.’s diplomatic relations with several countries that rely on USAID’s support.
Employees affected by the layoffs will have their flights to return home funded by the agency, with the understanding that they will still have access to USAID systems and diplomatic channels while making their way back to their countries of origin.
The USAID restructuring has gained further attention due to remarks made by U.S. entrepreneur and government efficiency advocate Elon Musk. Musk, who heads the Department of Government Efficiency (DOGE), referred to USAID as a “criminal organisation” and stated that it “needs to die.”
Musk’s comments were made in early February and stirred up significant controversy. He went on to claim that President Trump had agreed to shut down USAID altogether. While this assertion has not been officially confirmed by the White House, it adds fuel to the fire surrounding the agency’s closure.
DOGE, led by Musk, has clarified that it is already in the process of closing down USAID. The Department of Government Efficiency was created as part of a broader effort to streamline the federal government, reduce wasteful spending, and improve overall efficiency in U.S. governance. Musk, a vocal critic of inefficient bureaucracy, has positioned himself as a major player in the push to reduce or eliminate government agencies he deems ineffective.
The announcement of mass layoffs at USAID and Musk’s inflammatory comments have sparked mixed reactions. Critics of the administration have expressed concern about the negative effects of reducing foreign aid, especially in regions that rely heavily on U.S. assistance for development and humanitarian relief.
Some international organisations, particularly in Sub-Saharan Africa, South Asia, and parts of Latin America, have expressed unease over the cuts, as many rely on U.S. assistance in areas such as health, education, infrastructure, and disaster relief.