The UN Secretariat is planning to reduce its $3.7 billion budget by 20% and eliminate roughly 6,900 positions, according to an internal memo seen by Reuters. The directive asks staff to detail cuts by June 13. This comes amid a financial crisis triggered in part by the United States, which funds over 25% of the global organisation each year. Along with President Donald Trump's cuts to foreign aid that have severely damaged U.N. humanitarian organisations, the United States owes almost $1.5 billion for both the current fiscal year and arrears.
U.N. Controller Chandramouli Ramanathan, who wrote the memo, did not mention the U.S. nonpayment, reported Reuters. He added that the changes are part of an assessment initiated in March termed "UN80." "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," said Ramanathan. "I count on your cooperation for this collective effort whose aggressive timelines are recognised."
The cuts would be in effect from January 1, 2026, with the start of a new budget cycle.
This month, Secretary General Antonio Guterres told U.N. officials in public briefings that he is thinking about a significant revamp that would move resources throughout the world and combine key offices. He said the United Nations may reduce some of its agencies, reorganise others, relocate employees to less expensive places, cut down on redundancies, and do away with unnecessary bureaucracy. Guterres said, "These are times of peril, but they are also times of profound opportunity and obligation," 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 road. But that road is a dead end," he added.
China's frequent late payments have made the U.N.'s liquidity issue worse, which has been brought on by the U.S.'s refusal to pay its assessments. More than 40 percent of U.N. funding comes from the two countries combined, reported Reuters.
Moreover, hundreds of millions of dollars in discretionary money have been taken out by the Trump administration, causing dozens of humanitarian initiatives that U.N. officials have stated will cost lives to abruptly stop. Funding for several U.N. programs, including peacekeeping, has been cut or abolished in the proposed U.S. budget for the upcoming year, which Congress must approve, reported Reuters.
In order to make up a $58 million gap, Tom Fletcher, the head of the United Nations Office for the Coordination of Humanitarian Affairs, informed colleagues in April that the agency would have to reduce 20% of its workforce due to U.S. funding cuts.
It's uncertain whether the changes will impact the Trump administration's stance, said Richard Gowan, UN director at the International Crisis Group. "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 stated. He said that it's possible adding it's also possible that the government won't make any compromises and will simply pocket the savings.