Chaos erupts at Uno, as thousands of workers face potential job losses
The United Nations (UN) is facing a severe financial crisis, prompting the organization to implement drastic austerity measures including potential layoffs of about 6,900 employees. This financial strain is primarily due to reduced contributions, particularly from the United States, which is the UN's largest single financial contributor.
The UN's budget of $3.7 billion is set to be reduced by 20 percent, with employees being asked to submit detailed proposals for cuts by June 13. This cash deficit has reached $2.4 billion as of April 2025, marking a significant increase from the previous year, and reflects a pattern of delayed and reduced payments from member states.
The US President, Donald Trump, has repeatedly criticized the UN for its course and has cut funds. As a result, the UN's operational capacity has been severely affected. The UN Controller, Chandramouli Ramanathan, has not provided reasons for the payment default by the USA. He pointed out that the cuts are part of an audit.
UN Secretary-General Antonio Guterres is considering various cost-cutting measures, including the reduction or merger of individual UN departments or the relocation of UN locations to more affordable cities. Guterres warned that difficult decisions lie ahead, with the path of ignoring or postponing these decisions being a dead end.
These financial difficulties jeopardize the UN’s ability to fulfill its mandates and timely pay member states, undermining trust within the system. The UN began 2025 with a cash deficit of $135 million and collections as of April 2025 were the lowest in seven years.
The UN refugee agency is preparing to cut up to 30 percent of its staff worldwide to cope with budget constraints. These financial challenges are not new, but they have worsened recently. The Green politician Annalena Baerbock, who is running for the position of President of the UN General Assembly, has spoken of "strong financial and political pressure" and stated that the UN is needed more than ever.
In summary, the UN’s austerity measures and potential layoffs are a direct response to the reduced contributions from key member states like the United States, causing a cash crunch that forces the organization to cut costs drastically to continue functioning effectively.
The European Union, including the European Parliament and the Council, are closely monitoring the UN's financial situation, as the crisis could potentially impact the delivery of aid and resources, key aspects of both international politics and general-news. In response to the UN's financial difficulties, the European Commission is considering taking steps to increase contributions to help alleviate the strain on the global organization, acknowledging the crucial role the UN plays in finance and politics on a global scale.
