United Nations Likely To Lay Off 6,900 Employees Amid Budget Constraints: Report

Alongside cuts in US foreign aid under President Donald Trump that have severely impacted UN humanitarian agencies, the US currently owes the UN nearly $1.5 billion in arrears

UN Controller Chandramouli Ramanathan, the memo’s author, did not directly mention the US payment shortfall

Source : Qandle

The United Nations Secretariat is planning to slash its $3.7 billion budget by 20 per cent and cut around 6,900 jobs, according to a Reuters report citing an internal memo. The directive, which requires UN staff to submit detailed budget reduction plans by June 13, comes amid a financial crisis partly triggered by the United States, which contributes nearly a quarter of the organisation’s funding each year.

Alongside cuts in US foreign aid under President Donald Trump that have severely impacted UN humanitarian agencies, the US currently owes the UN nearly $1.5 billion in arrears and for the current fiscal year.

UN Controller Chandramouli Ramanathan, the memo’s author, did not directly mention the US payment shortfall. He described the cuts as part of a review launched in March called "UN80," aimed at modernising the organisation.

"It is an ambitious effort to ensure that the United Nations is fit for purpose to support 21st-century multilateralism, reduce human suffering and build better lives and futures for all. I count on your cooperation for this collective effort whose aggressive timelines are recognized,” Ramanathan said.

The proposed cuts would take effect on January 1, the start of the next budget cycle, as per the report.

Major Overhaul

In recent briefings to UN diplomats, Secretary-General Antonio Guterres outlined plans for a major overhaul that could include merging key departments, reallocating resources globally, consolidating agencies, moving staff to lower-cost locations, and cutting redundant bureaucracy.

These are times of peril, but they are also times of profound opportunity and obligation. 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,” said Guterres said on May 12, as per the report.

The UN’s liquidity crisis has been worsened not only by US payment delays but also by China’s repeated late contributions. Together, these two countries provide over 40 per cent of the UN’s budget.

In addition to withholding funds, the Trump administration has withdrawn hundreds of millions in discretionary aid, abruptly halting dozens of humanitarian programs, which UN officials warn could cost lives. The proposed US budget for the coming year, still subject to Congressional approval, cuts or drastically reduces funding for several UN initiatives, including peacekeeping.