The International Committee of the Red Cross (ICRC) has announced significant cost-cutting measures in response to a deepening financial crisis. The humanitarian organization will reduce its 2026 budget by nearly 20% to 1.8 billion Swiss francs (approximately $2.2 billion) and cut 2,900 jobs, representing roughly 15% of its global workforce of 18,500.

This move comes as major donors, including the United States, Britain, and Germany, shift priorities away from humanitarian assistance and towards defense spending. The resulting aid shortfall is forcing international humanitarian organizations like the ICRC to make difficult choices about how to allocate limited resources in the midst of multiple global conflicts and record levels of displacement.

Donor Fatigue Puts Humanitarian Organizations Under Pressure

According to ICRC officials, the current funding crisis is “of unprecedented proportions”, reflecting the changing priorities of traditional donors. The United States, the ICRC’s largest contributor, has reduced its support in 2025, while other long-time supporters are also scaling back. Analysts note that as governments focus more on national defense and geopolitical strategies, humanitarian aid programs face increased uncertainty, creating additional strain on organizations tasked with delivering life-saving support worldwide.

In response to the funding squeeze, the ICRC plans to merge several departments and implement other efficiency measures to maximize the impact of its reduced budget. These efforts aim to ensure that the organization can continue operating in some of the world’s most dangerous conflict zones, including Sudan, Ukraine, Gaza, Israel, and the Democratic Republic of Congo.

Commitment to Conflict Zones Despite Budget Cuts

ICRC President Mirjana Spoljaric emphasized the organization’s dedication to maintaining its presence in critical regions. “The ICRC remains committed to working on the front lines of conflict, where few others can operate,” she stated. “But the financial reality is forcing us to make difficult decisions to ensure we can continue to deliver critical humanitarian assistance to those who need it most.”

A third of the job reductions will be achieved through voluntary redundancies and leaving vacant positions unfilled, while approximately 200 jobs will be cut in Geneva, the organization’s founding city in 1863. Despite the reductions, the ICRC’s mission will continue to include providing basic humanitarian aid, visiting prisoners of war, and acting as a neutral intermediary in conflict zones, such as overseeing hostage transfers from Gaza under recent ceasefire agreements.

The Broader Humanitarian Landscape

The ICRC operates in over 90 countries, providing essential services that range from medical assistance to negotiating safe passage for civilians and prisoners in conflict areas. Experts warn that donor fatigue and shifting geopolitical priorities could have ripple effects across the global humanitarian sector, limiting the reach of aid organizations during times of unprecedented crisis.

The Red Cross’s latest actions highlight the vulnerabilities of international aid systems when faced with funding shortfalls and geopolitical shifts. As conflicts in Sudan, Ukraine, Gaza, and other regions continue, the world watches closely to see how humanitarian organizations will adapt to these challenging circumstances.