Organizations like Save the Children, IREX, Chemonics, FHI 360, Population Services International, DAI Global, Abt Global, and the American Institutes for Research (AIR), all share a common thread: they used to work closely with USAID to support foreign aid by executing USAID-funded projects around the globe. With the sudden dismantling of USAID, these companies have been forced to lay off thousands of workers, significantly impacting the Washington, D.C. area where many of these contractors are based.
For instance, Chemonics has already let go of 500 employees in D.C., while FHI 360 has cut 260 positions in the area due to federal funding reductions. The International Republican Institute in D.C. has laid off nearly 250 staff members, and USAID contractor Dexis Consulting has also reduced its workforce by dozens in D.C. Creative Associates has shut down its office in D.C., and contractors Save the Children and IREX have laid off 246 employees in the region. Additionally, the Arlington-based nonprofit International Foundation for Electoral Systems has let go of several staff members, and Credence Management Solutions LLC in McLean has laid off nearly 400 employees.
At least two USAID subcontractors, DevWorks International based in Bethesda and Contract Solutions Inc. in Manassas, have gone out of business due to lost contracts, alongside several of USAID’s largest contractors. The recent wave of layoffs at AIR follows thousands of job cuts and furloughs across numerous local contractors over the past few months. Among these, Chemonics International, one of the largest for-profit international development firms working with USAID, has made significant cuts after receiving notice in late March.
And the situation is likely to worsen, as more companies may follow suit and go out of business.