Saturday

04-26-2025 Vol 1942

Mass Layoffs Hit USAID Contractors as Funding Cuts Wreak Havoc on Workforce

In a series of unexpected moves, close to 20,000 employees across the United States, particularly those working with contractors for the United States Agency for International Development (USAID), are facing job loss as the funding cuts initiated by the Trump administration take their toll.

Lindsay Brown, who worked in internal communications for the nonprofit FHI 360, was among those affected. Working from her home in Little Rock, Arkansas, she learned during a company meeting in February that fiscal constraints necessitated staff changes. Shortly after that meeting, she was furloughed, with her final day at FHI 360 set for May 2.

Brown’s situation is not isolated. According to data compiled by USAIDstopwork, nearly 19,187 jobs have been lost across 46 states, largely due to significant cuts to USAID funding, which previously supported numerous programs across the country. Many employees, particularly in states like North Carolina, Vermont, California, and Georgia, are now left reeling from not only layoffs but also the broader implications on their local economies.

Secretary of State Marco Rubio has stated that the government plans extensive staffing cuts at USAID, eliminating all but legally required positions and consolidating operations within the State Department. This announcement has raised concerns for many workers across the country who had relied heavily on government funding to maintain their livelihoods.

As FHI 360 CEO Tessie San Martin mentioned on LinkedIn, the organization has already terminated 480 U.S. employees, including a significant number in North Carolina, where the nonprofit is headquartered. The layoff wave has created a crisis felt beyond just federal employees living near the capital; it represents a deep and painful impact across the country.

Wayan Vota, previously employed by Humentum in Chapel Hill, North Carolina, was laid off in February and expressed the shock and confusion among employees in his sector. “Layoff trauma hit across the country,” Vota noted, highlighting how many workers have been left in a state of uncertainty. To offer support, he started a newsletter titled Career Pivot aimed at connecting fellow contractors and federal workers affected by the downturn. It has since attracted over 12,000 subscribers as the ramifications of the funding cuts continue to unfold.

The anticipated crisis is expected to escalate further as remaining USAID workers cease to receive salaries, with a memo indicating that most employees will be let go by July 1 or September 2. Many displaced workers are now seeking new opportunities outside of government positions, eyeing private sector jobs or roles within state government. Others have expressed feelings of despair, indicating that they feel compelled to step outside their professional expertise, taking up temporary work like driving for ride-sharing companies or serving in restaurants.

Kasia Hatcher, a seasoned professional in international development for over two decades, was forced to adapt after losing her job with EnCompass due to the funding reductions. After moving from Virginia to Georgia, she is on the hunt for jobs in human resources, attempting to rebuild her career amid a challenging landscape. “It’s daunting to have to build again,” she said, reflecting on the rapid loss of her professional standing. Despite the hurdles, Hatcher remains optimistic about finding a position where she can contribute her extensive skills and experience.

As job seekers express their frustrations, many are grappling with the reality that their careers may not return to normalcy anytime soon.

The financial strain brought on by USAID budget cuts has underscored not just individual hardships but an expansive ripple effect damaging communities and economic stability across the United States. With infrastructure reliant on federal funding now compromised, displaced workers face uncertainty as they navigate their next steps.

The pain reverberates through conversations, many of which reflect a grim reality. “I don’t see anything I can or want to do in the formal job market, so I am going to take any job, driving Ubers, waiting tables, cause my dream is dead and I’m not sure what I’m going to do next,” Vota shared, echoing the sentiment of many who find themselves at a crossroads.

The long-term implications of the drastically reduced USAID presence will likely extend far beyond immediate job losses. As stakeholders in the nonprofit sector call for action to restore necessary funding, advocates are stressing the importance of understanding the full scope of the situation — not just in Washington, D.C., but across states that house essential support networks, innovations, and dedicated professionals in international service and development.

In the face of layoffs and funding losses, workers like Brown, Vota, and Hatcher demonstrate resilience and hope, yet the looming threat of joblessness poses serious concerns about the future workforce dedicated to crucial social and international development initiatives.

image source from:https://www.cbsnews.com/news/usaid-cuts-felt-far-outside-washington-d-c-layoff-trauma-country/

Abigail Harper