In February, Badminton was among seven Olympic sports to lose fundingdespite Chris Langridge and Marcus Ellis winning doubles bronze at Rio 2016.
“We are working through an unprecedented financial situation as a consequence of the recent funding decisions,” Badminton England performance director Jon Austin said.
The Sudirman Cup starts on 21 May.
The event in Gold Coast, Australia, is seen as an unofficial test event for next year’s Commonwealth Games to be held in the same city.
England finished ninth in the last edition of the World Mixed Team Championships, which take place every two years.
“We have had to consider the investments we make very carefully,” Austin added.
“The pressures we are facing right now, both through the people resource and financial investment needed, means we are regrettably not in a position to commit to the Sudirman Cup this year.”
Badminton England received around £5.5m between London 2012 and 2016 and was left “staggered” when it had its funding pulled, despite beating a Rio Games performance target set by elite sport funding body UK Sport.