The announcement of these layoffs and closures marks a significant shift in U.S. foreign aid policy, with implications for humanitarian efforts worldwide.

In August 2025, more than 10,000 locally hired foreign nationals will receive layoff notices, alongside U.S. diplomats and civil servants working abroad for USAID.

A summary from a regional bureau's conference call indicated that every position within USAID would be eliminated, urging personnel to focus on securing their benefits as they face impending layoffs.

On March 28, 2025, Congress was informed that nearly all employees of the U.S. Agency for International Development (USAID) would be terminated by September 2025, with the agency's overseas offices set to close and operations absorbed by the State Department.

This significant restructuring, driven by Elon Musk's cost-efficiency team and aligned with 'America first' policies initiated by Musk and former President Donald Trump, aims to dismantle USAID entirely.

The agency's restructuring has already led to administrative leaves for many staff and the termination of over 5,000 programs, significantly impacting global humanitarian efforts.

USAID, which has operated in over 60 countries and focused on humanitarian aid and health programs, has been a major source of funding for regions such as Ukraine, the Democratic Republic of Congo, Jordan, and the Gaza Strip.

As part of the transition, all foreign offices of USAID will be closed, and certain functions will be transferred to the State Department.

A senior former USAID official described the current situation as the 'final closing out' of the agency, which has provided foreign aid for more than 60 years.

According to a Reuters report, thousands of local and overseas American workers will be terminated as part of this dismantling process.