One Economy Foundation cuts 12 jobs following funding reduction

The One Economy Foundation has reduced its permanent workforce by 12 employees following a 25% cut to its operating budget after one of its largest donors reduced its funding.

In a media release issued on Friday, the foundation says the funding reduction necessitated difficult decisions to safeguard the delivery of its core services.

“The recent funding reduction by one of the top five donors to One Economy Foundation has resulted in a reduction of 25% to One’s operating budget. To protect the provision of core services to the community, difficult decisions had to be made, including reducing our staff complement from 37 permanent employees to 25,” it says.

The foundation says the restructuring reflects the broader decline in global donor funding to non-profit organisations rather than issues specific to the foundation.

It says the affected employees have been informed and offered a three-month exit period instead of immediate termination. Psychosocial support, financial well-being assistance, career transition services and flexible working arrangements have been made available to those affected.

“The decision to restructure roles is not a reflection of the performance or commitment of the affected individuals and is based solely on financial realities,” it says.

According to the foundation, the donor responsible for the funding reduction ensured that programmes it supported, as well as their beneficiaries, would remain unaffected.

The organisation’s other programmes will continue as normal due to funding from multiple donors and existing multi-year funding agreements.

The One Economy Foundation says its priority remains maintaining integrated services for young people, including skills development, entrepreneurship, sexual and reproductive health services, mental health support, science, technology, engineering and mathematics (STEM) education and after-school care programmes.

The foundation acknowledges that some advocacy-focused events have been cancelled and expansion into new communities may be delayed because of the funding constraints.

To strengthen its long-term financial sustainability, the organisation is expanding revenue-generating initiatives, including renting out facilities at the #BeFree Campus and hosting its annual fundraising gala dinner on 1 October.

It says its 5% shareholding in Bannerman Energy Ltd is expected to generate dividend income from around 2031, subject to the company’s performance. – Nampa

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