Reduction of Staff Positions and a 20% Decrease in Budget Proposed by the United Nations Discussed
The United Nations is contemplating significant cuts to its workforce and budget amid a worsening financial crisis. A confidential memo obtained by Reuters indicates that the world body is planning to eliminate approximately 6,900 jobs and slash its $3.7 billion budget by 20%. Proposals for these reductions are expected to be submitted by the UN staff by June 13.
The financial difficulties facing the UN are partly attributed to the US halting payments. Historically, the US has contributed nearly a quarter of the organization's annual budget, and currently has an outstanding debt of nearly $1.5 billion. US President Donald Trump has been critical of the UN and has cut funds in the past. The memo does not specify the reasons for the US payment default.
The UN Controller, Chandramouli Ramanathan, in his memo, notes that the cuts are part of a review aimed at ensuring the UN remains effective in a 21st-century context. In his words, "This endeavor is ambitious, aiming to ensure the United Nations fulfills its purpose, supports 21st-century multilateralism, reduces human suffering, and creates a better life and future for all." The budget cuts are scheduled to take effect from January 1, 2026.
In response to the crisis, UN Secretary-General Antonio Guterres is considering various measures, including the reduction or merger of individual UN departments and the relocation of UN sites to more affordable cities. Warning of tough decisions ahead, Guterres indicated that, "[It's] easier and tempting to ignore [them] or kick the can down the road. But that way is a dead end."
Proposed cost-saving measures include consolidating UN agencies, realigning programs to better implement member states’ mandates, and potentially moving operations from traditionally expensive locations to lower-cost stations. The UN80 initiative, launched in March 2025, focuses on identifying operational efficiencies, reviewing mandate implementation, and conducting a strategic review for deeper structural changes.
As the UN grapples with a funding deficit, the US arrears, and increased scrutiny, this comprehensive restructuring effort seeks to enhance efficiency, reduce duplication, and align programs with evolving global needs while saving costs. The objective is to ensure the UN remains effective and financially sustainable in the face of declining global aid and growing challenges.
- The UN's employment policy might undergo significant changes as part of the review aiming to ensure the organization remains effective in the 21st century, with potential reduction or merger of individual departments and relocation of UN sites to more affordable cities.
- As the UN faces a funding deficit and increased scrutiny, the proposed UN80 initiative focuses on identifying operational efficiencies, reviewing mandate implementation, and conducting a strategic review for deeper structural changes, aiming to align programs with evolving global needs while saving costs and enhancing financial sustainability.
