Budget and staff reductions of up to 20% under review by the United Nations
The United Nations Considers Job Cuts and Budget Reductions
The United Nations is contemplating significant job reductions and a 20% cut to its $3.7 billion budget, as per an internal memo acquired by Reuters. The document requests UN staff to submit detailed proposals for cuts by June 13. The financial turmoil at the UN is partly due to the US, which has partially halted its contributions. Historically, the US has contributed nearly a quarter of the world organization's annual budget. President Donald Trump has been critical of the UN and has reduced funds.
Chandramouli Ramanathan, the author of the memo and the UN controller, has not explained the reasons for the US payment default. He stated that these cuts are part of a review. "Our goal is to ensure that the United Nations fulfills its purpose, supports 21st-century multilateralism, reduces human suffering, and creates a better life and future for all," explained Ramanathan. The cuts are set to take effect on January 1, 2026.
UN Secretary-General Antonio Guterres is considering various measures, including downsizing or merging UN departments and relocating UN sites to more affordable cities. "Do not be deceived: challenging and difficult decisions loom ahead. Postponing them or pushing them aside is not an option," Guterres cautioned.
The UN's financial crisis stems from the threat of steep cuts in funding from the US. The Trump administration has indicated a hardline intention to withdraw most US funding for the UN, forcing the organization to adapt swiftly to a tighter financial environment. In response, Guterres has initiated the UN80 reform initiative, aiming to make the UN more efficient and suitable for 21st-century multilateralism.
Critics argue that these changes are being pursued too hastily, potentially compromising the UN's ability to meet its mandates. There are concerns that rapid restructuring could undermine staff morale and have far-reaching consequences for the organization's operations. Other UN agencies, such as the International Organization for Migration (IOM), UN Refugee Agency (UNHCR), World Food Programme (WFP), and World Health Organization (WHO), are also facing budget deficits and implementing job and cost reductions.
The impact of these cuts on UN operations is expected to be substantial. Departments and agencies may need to scale back essential programs, reduce humanitarian aid, trim administrative support, and limit their ability to respond to global crises. The restructuring process is further complicated by political resistance from member states, each with their own preferences and interests regarding specific UN entities, making it difficult to streamline or consolidate overlapping agencies. Overall, these changes could jeopardize the UN's effectiveness in achieving its core objectives, from peacekeeping to international development.
- The UN's employment policy might need to be adjusted as part of the UN80 reform initiative, given the financial constraints caused by a potential withdrawal of US funding and the need to streamline agencies for 21st-century multilateralism.
- As part of the UN's financial restructuring, various departments and agencies, such as the World Food Programme, World Health Organization, and others, are also implementing job and cost reductions, potentially affecting their ability to respond to global crises and provide essential programs.
