Internal fallout at USAID: Mass layoffs leave global staff reeling

A long-standing pillar of international development is being dismantled—quietly, swiftly, and with far-reaching consequences.

The US Agency for International Development, better known as USAID, is undergoing a dramatic shake-up that’s already impacting thousands of workers at home and abroad.

Sources say this restructuring is part of a broader government-wide cost-cutting plan, led by a team appointed to streamline federal operations.

And now, the humanitarian and diplomatic ripple effects are beginning to show.



A Major Shift for US Foreign Aid​

USAID has long played a central role in American foreign policy and international relief efforts.

With missions in more than 60 countries, it has funded and managed programs in global health, crisis response, education, and food security.

But now, according to internal communications and congressional notifications, USAID’s overseas footprint is set to shrink dramatically.

More than 10,000 locally hired foreign nationals and over 600 US diplomats and civil servants assigned to international posts are facing termination.


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Elon Musk's cost-cutting team is in the process of dismantling the US Agency for International Development. Image source: FRANCE 24 English / YouTube


Congress has been informed that most USAID missions abroad will close by September.

Select program functions may be absorbed by the State Department, but the agency’s independence—as it has operated since its inception—is effectively ending.

In terms of numbers and scope, this is one of the largest agency overhauls in recent history.

The Humanitarian Fallout​

The changes come at a time when global humanitarian needs remain high.

USAID has been a leading contributor to emergency efforts in conflict zones and disaster-stricken areas, including Ukraine, the Democratic Republic of Congo, Jordan, and across the Israeli-occupied West Bank and Gaza Strip.

Over 5,000 programs may be halted as a result of the restructuring, raising questions about who will fill the void in food aid, infrastructure support, and public health.



Beyond funding cuts, the layoffs affect people—career civil servants and local professionals—many of whom have worked for years building trust within the communities they serve.

Labor rights experts have raised concerns about compliance with local employment laws as dismissals proceed overseas.

Some warn that the loss of these skilled workers could weaken diplomatic ties and set back development progress for years.

Controversy and Reactions​


The restructuring is part of a broader initiative aligned with the administration’s efforts to reduce government spending and prioritize domestic interests.

President Donald Trump has previously criticized USAID, alleging—without providing evidence—that the agency has been mismanaged.

Statements referring to USAID as fraught with fraud and run by “radical left lunatics” have surfaced, while Elon Musk, who was appointed to lead efficiency reforms, has reportedly described the agency as a “criminal” institution.

Also read:
Key Takeaways

  • Elon Musk's cost-cutting team is in the process of dismantling the US Agency for International Development, leading to the firing of local workers and US diplomats and civil servants.
  • Congress was notified that USAID's offices will be shut by September, with some functions being absorbed into the State Department.
  • Over 10,000 locally hired staff and more than 600 US diplomats on secondment are set to be terminated, impacting USAID's missions in over 60 countries.
  • The firings and closure of programmatic work are in line with President Donald Trump's “America First” policies, despite claims of the agency being fraught with fraud and run by
    “radical left lunatics” without evidence.
Have you worked with or benefited from USAID’s programs? Do you believe the US should continue funding overseas development projects, or focus more inward? Share your thoughts and experiences in the comments below.
 

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