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The World Food Program (WFP) Ethiopia office is getting ready to lay off more than a third of its staff amid funding shortfalls, sources confirmed to The Reporter.

Officials have notified staff members about plans to let 38 percent of an estimated 1,500 WFP staff across Ethiopia, according to the sources.

WFP is the largest humanitarian agency globally and is the sole humanitarian assistance provider for over 1.1 million refugees and millions of IDPs in Ethiopia. In Tigray alone, there are over 3.5 million people in need of humanitarian assistance, according to OCHA, and nearly a million of them are IDPs who have been unable to return to their homes since the northern war.

Despite the overwhelming need brought on by protracted conflicts and climate change, growing dependence on humanitarian assistance in places like Gaza and Ukraine is diverting already-scarce funding away from crises in Ethiopia and elsewhere in the Horn region.

Last week, Claire Nevill, communications director at WFP Ethiopia, told The Reporter that the amount of aid assistance for refugees in Ethiopia has dropped by 40 percent due to a lack of funding.

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Neither Nevill nor other members of the WFP Ethiopia communications team agreed to comment on the impending layoffs despite repeated attempts by The Reporter.

This week, Carl Skau, WFP deputy executive director, was in Ethiopia alongside the EU Director-General for Civil Protection and Humanitarian Aid Operations (DG-ECHO).

The two sat down with Misganu Arega, a senior Foreign Affairs official, for talks about humanitarian assistance issues. However, the details of their discussions have not been made public, other than a statement from the delegation affirming their commitment to enhancing partnership and coordination with the Ethiopian government in the areas of humanitarian support and transition to development.

According to an emergency update posted on its website, WFP requires USD 322 million to cover the costs of its humanitarian operations in Ethiopia through March 2025.

There were 15.8 million people in need of food assistance in 2024, and 41 percent of children between 6-59 months have chronic malnutrition, according to the update.

“Ethiopia continues to face conflict, drought, flooding and inflation, which are all fueling increased food insecurity. Despite a peace agreement for the Tigray region, intense armed conflict has erupted in other regions—primarily Amhara and Oromia. Drought—driven by La Niña—could escalate Ethiopia’s hunger crisis, particularly in southern and southeastern regions. The October-to-December rainy season is forecast to fail as La Niña brings drier conditions. As a result, WFP operations face elevated risks and costs to ensure safe and rapid deliveries to those people who depend on our support,” reads the update.

WFP expects to receive USD eight billion in funding in 2025, down from USD 8.9 billion 2024, according to its strategy.

“WFP’s projected operational requirements for 2025 are estimated at USD 16.9 billion to assist 123 million people. The requirements reflect the global humanitarian needs stemming from alarming levels of hunger and malnutrition, actions to be taken by other actors and WFP’s capacity to respond,” it reads.

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