Reduction of staff and budget by 20% under deliberation by the United Nations
The United Nations (UN) is on the brink of dramatic budget cuts and job reductions, according to an internal memo obtained by Reuters. The memo, penned by UN Controller Chandramouli Ramanathan, requests UN staff to propose detailed cost-saving measures by June 13.
This move is a response to the UN's financial predicament, in part due to the USA, which has partially withheld its payments. Over the years, the USA accounted for almost a quarter of the UN's annual budget. In recent years, the Trump administration had criticized the UN and reduced funding due to its perceived deviation from its core mission.
The memo does not delve into the reasons for the USA's delayed payments. Nevertheless, Ramanathan asserts that the proposed cuts aim to streamline the UN's operations and align them with the demands of the 21st century. The aim is to reduce human suffering, create a better future, and support contemporary multilateralism. The proposed changes will come into effect on January 1, 2026, and could potentially affect about 6,900 jobs.
UN Secretary-General Antonio Guterres is mulling over various measures, such as reshaping individual UN departments, merging their functions, or relocating UN locations to more affordable cities. In a stern warning, Guterres emphasized that challenging decisions lie ahead, and delayed action could lead to dire consequences.
A deep-rooted financial crisis has hit the UN due to persisting liquidity issues. Member states not meeting their financial obligations or defaulting on time payments has aggravated the situation. The crisis worsened when the USA, one of the UN's biggest financial contributors, significantly reduced its funding. The reduction in funding from traditional donors like the UK, Germany, and France, as well as the dismantling of USAID, have further contributed to shrinking global development aid. This shrinkage has had a direct impact on the funding landscape for UN programs.
The UN is reportedly owed around $1.5 billion by the United States in unpaid dues. The delayed payments have resulted in suspension of certain humanitarian programs, further exacerbating the UN's financial difficulties. Consequently, the organization is left with no choice but to revise its budget and personnel structure to continue operating effectively within the constraints imposed by reduced funding.
The proposed cost-saving measures by UN Controller Chandramouli Ramanathan, aimed at streamlining UN operations and aligning them with the demands of the 21st century, may involve changes in employment and community policies, as the UN Secretary-General Antonio Guterres considers reshaping individual UN departments, merging their functions, or relocating UN locations to more affordable cities. The financial crisis at the UN, worsened by delayed payments from the USA and other member states, has necessitated a review of financing, business, and political policies associated with the UN's general-news operations.
