UN May Cut 7,000 Jobs Due to Financial Crisis: Report

The United Nations is reportedly considering cutting approximately 7,000 jobs as it struggles with a worsening financial crisis. The potential layoffs reflect growing budgetary pressures and funding shortfalls faced by the organization. This move could significantly impact its global operations and workforce. The reported job cuts highlight the urgent need for financial reforms or increased contributions from member states to stabilize the UN’s finances and maintain its essential programs and services worldwide.

Staff members have been instructed to submit proposed reductions by June 13, in response to a deepening financial crisis, partly caused by the United States, which typically contributes close to 25% of the organization’s budget.

According to an internal communication reviewed by Reuters, the UN Secretariat is planning to reduce its $3.7 billion budget by one-fifth and eliminate approximately 6,900 positions. The staff directive was issued as the UN faces growing financial strain, largely influenced by the U.S., a major contributor to its funding.

Cuts to U.S. foreign aid under President Donald Trump have severely impacted UN humanitarian organizations, and the country currently owes nearly $1.5 billion in both overdue and current-year dues. UN Controller Chandramouli Ramanathan, who authored the memo, did not explicitly mention the unpaid U.S. contributions but said the budget cuts are part of a strategic review known as "UN80," which began in March.

He emphasized that this initiative aims to modernize the UN to meet the challenges of today’s global landscape, alleviate human suffering, and improve lives and communities across the world, urging staff to actively support the demanding reform timeline. The budget reductions are slated to begin on January 1, aligning with the start of the upcoming fiscal cycle.

During recent meetings with diplomats, UN Secretary-General Antonio Guterres said he is contemplating major structural changes, including department mergers and reallocating resources globally. He indicated that the organization might consolidate certain entities, scale back others, relocate jobs to more affordable cities, and remove overlapping or inefficient processes.

On May 12, Guterres acknowledged the difficult path ahead but also framed it as a pivotal moment full of potential and responsibility. He warned against avoiding tough choices, saying that delaying action would lead to a dead end.

The financial shortfall is worsened by the delayed payments from China, alongside the U.S. default, with both countries collectively responsible for over 40% of the UN’s funding. The Trump administration also withdrew substantial discretionary funds, causing numerous emergency relief operations to cease abruptly, an outcome UN officials say endangers lives.

The next proposed U.S. budget, still awaiting Congressional approval, aims to severely slash or eliminate financial support for multiple UN initiatives, including peacekeeping missions. In April, Tom Fletcher from the UN’s Office for the Coordination of Humanitarian Affairs informed staff that the agency would have to reduce personnel by 20% to make up for a $58 million funding gap due to U.S. cuts.

Richard Gowan, who oversees UN affairs at the International Crisis Group, remarked that it remains uncertain whether the planned reductions will influence the U.S. administration’s stance. He noted that some diplomats believe Guterres hopes the promise of cost-cutting will prompt the U.S. to soften its threats to eliminate UN funding entirely. However, Gowan added that it's equally plausible the U.S. will accept the cuts without offering anything in return.

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Source: NDTV‍