The humanitarian aid association is encountering financial difficulties which will force it to reduce its staff.
One of the largest humanitarian organizations in the world is in dire straits. Established in more than 100 countries around the world, the Red Cross obviously has a very large operating budget. Despite its international notoriety, the Red Cross is currently experiencing financial difficulties which will force it to cut 1,500 jobs.
The shrinking budgets
It was via a press release posted on its site on April 4, 2023 that the International Committee of the Red Cross published the news. While it employs nearly 20,000 people across 100 countries around the world, the ICRC will see its budget drop by 430 million Swiss francs for the 2023 and early 2024 financial years. A financial year that started with a deficit of 140 million Swiss francs .
A significant drop which will in particular require it to part with 1,500 jobs in its various structures.
Drop in donations
To explain its financial situation, the ICRC explains that its appeal for donations of 2.8 billion Swiss francs for was not covered. As is the case for much of the charitable sector, the war in Ukraine and increased allocation of resources to help the country in the war against Russia has reduced donations for other organisations.
The ICRC has announced that its budget will eventually be set at $2 billion, taking into account that inflation has also considerably strained its operating budget.
Limit layoffs
To limit the impact of this drop in donations, the ICRC announces that it will concentrate its activities on the areas and programs which need it the most and on which the Red Cross can have “the greatest impact”. 20 sites out of the 350 piloted by the ICRC should close around the world and programs will be closed.
The job cuts will take place over the next 12 months. The ICRC will make sure to limit layoffs as much as possible by freezing recruitment and not replacing “natural departures”.