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The United Nations is preparing to cut 20% from its $3.7billion operating budget, potentially eliminating close to 6,900 jobs, according to an internal directive.
The cost-saving measures are part of a wider initiative, known internally as “UN80,” launched in March to review the organization’s ability to deliver on its global mission amid intensifying fiscal pressure. Staff across departments have been asked to submit detailed proposals for reductions by June 13, with cuts to take effect on January 1.
UN Controller Chandramouli Ramanathan wrote in the memo that the goal is to ensure “the United Nations is fit for purpose to support 21st-century multilateralism, reduce human suffering and build better lives and futures for all.” While the memo does not directly cite the source of the financial shortfall, the UN is currently facing a liquidity crisis in part due to nearly $1.5billion in arrears from the United States.
Departments may merge or relocate under reform plan
Secretary General Antonio Guterres has floated a sweeping structural overhaul in recent briefings with UN diplomats. The proposals include merging major departments, consolidating some agencies, cutting duplication, and relocating staff to lower-cost locations.
“These are times of peril, but they are also times of profound opportunity and obligation,” Guterres told diplomats on May 12. “Make no mistake: uncomfortable and difficult decisions lie ahead. It may be easier and even tempting to ignore them or kick the can down the roads. But that road is a dead end.”
Though Guterres framed the restructuring as a long-overdue modernization effort, the timing of the proposed reforms coincides with ongoing delays in US payments and a broader retraction of US foreign aid under the Trump administration. Together, the United States and China account for more than 40% of the UN’s funding. China has also been repeatedly late with its contributions, further tightening cash flow.
US review of UN funding raises further uncertainty
A State Department spokesperson confirmed that US contributions to the UN are currently under review as part of a broader assessment ordered by Trump, due in early August. The spokesperson declined to comment on the proposed UN cuts.
Meanwhile, the proposed US federal budget has removed or reduced funding for several UN programs, including peacekeeping and humanitarian relief. In one case, a senior UN official at the Office for the Coordination of Humanitarian Affairs warned in April that funding shortfalls would require a 20% reduction in staff to cover a $58million deficit.
Richard Gowan, UN director at the International Crisis Group, said Guterres may be signaling willingness to make internal cuts in the hope of encouraging the US to maintain its support.
“Diplomats think that Guterres hopes that if he shows he will make these cuts, then the administration will ease off on their threats to zero out funding for the UN,” Gowan said. “That's possible. It's also possible that the administration will just pocket the cuts and not make any concessions.”
It leaves the organization's HR departments across the globe with a huge restructuring task as it seeks to maintain influence and capability amid an unprecedented funding crisis that will affect a huge variety of roles.
