One Economy cuts 12 jobs as donor withdraws funding

The One Economy Foundation has cut 12 permanent positions, reducing its workforce from 37 to 25 employees, after its operating budget fell by 25% when one of its five largest donors withdrew funding.

The foundation announced the restructuring last week, saying the move reflected mounting financial pressure on non-profit organisations globally rather than internal shortcomings.

Executive director Pauline Thomas Kahupi acknowledged the impact on staff.

"Losing colleagues is hard, and we don't minimise that," she said.

She said affected staff were informed promptly and offered a three-month exit period rather than immediate termination.

They will also be given access to psychosocial support, financial wellbeing assistance, career transition services and preferential consideration for future vacancies within the organisation.

The foundation emphasised that the restructuring was not a reflection of the performance or commitment of the affected individuals and was based solely on financial realities.

Despite the funding setback, the organisation said its priority remains protecting frontline services that support young people, including outreach through its mobile vans.

While essential programmes would remain operational, the foundation confirmed that some advocacy-focused events had been cancelled and expansion into new communities would take longer than planned.

"Although the funding landscape has changed, our purpose has not," Kahupi added. "We remain committed to creating opportunities, improving wellbeing and helping young people build better futures."

She said the funding constraints were expected to affect the number of new beneficiaries reached rather than the quality of services provided.

"We believe in what we do. So do our donors," Kahupi said. She added that the organisation regarded the current challenges as temporary while it actively sought additional funding.

Explores new revenue streams

To strengthen its long-term sustainability, the foundation was expanding revenue-generating initiatives, including renting out facilities at the #BeFree Campus, while also pursuing new donor partnerships.

Tickets are now on sale for its annual fundraising gala dinner on 1 October, which will contribute towards unrestricted funding for its programmes.