The United Nations Secretariat is proposing a reduction of approximately 6,900 jobs alongside a 20% budget cut from its $3.7 billion allocation, according to an internal memo obtained by Reuters. This initiative is part of a broader financial review titled "UN80," aimed at addressing urgent fiscal challenges and enhancing the organization's operational efficiency for the 21st century.
The directive requires U.N. departments to identify specific cuts by June 13, with the proposed reductions slated to commence January 1, the start of the next budget cycle. The financial crisis confronting the U.N. has been exacerbated by delayed and reduced contributions from major donors, notably the United States, which accounts for nearly a quarter of the U.N.'s funding. Currently, the U.S. has unpaid dues amounting to approximately $1.5 billion, further straining the organization’s liquidity.
Secretary-General Antonio Guterres has publicly outlined plans for a substantial restructuring, including merging major departments, consolidating agencies, relocating staff to less costly locations, and eliminating redundant operations. He emphasized the urgency and difficulty of these measures, stating 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."
The financial shortfall is compounded by additional delays in payments from China, with these two nations combined responsible for over 40% of the U.N.'s funding. Moreover, the previous U.S. administration cut hundreds of millions of dollars in discretionary funds, causing the abrupt suspension of numerous humanitarian programs potentially risking lives.
In April, Tom Fletcher, head of the U.N. Office for the Coordination of Humanitarian Affairs, informed staff that a $58 million funding gap due to U.S. cuts would necessitate a 20% reduction in personnel within the agency.
Experts such as Richard Gowan of the International Crisis Group note uncertainty about whether the proposed cuts will influence the U.S. administration's funding stance. He remarked, "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 U.N. That’s possible. It’s also possible they will just pocket the cuts and not make any concessions."
The U.N.'s efforts to restructure signify an attempt to safeguard its critical operations amid growing financial pressures and geopolitical challenges, underscoring the need for multilateral cooperation in sustaining global governance mechanisms.
