Over time FHI faced increasing administrative headwinds within the Faculty of Philosophy (the Institute’s organizational home). Starting in 2020, the Faculty imposed a freeze on fundraising and hiring. In late 2023, the Faculty of Philosophy decided that the contracts of the remaining FHI staff would not be renewed. On 16 April 2024, the Institute was closed down.
I sort of want to flag this interpretation of whatever gossip you heard seems misleading/only telling small part of the story, based on my understanding.