Considering potential job reductions involving nearly 7000 positions at the United Nations
The United Nations contemplates substantial budget reductions and potential job eliminations, primarily due to financial shortfalls caused by delayed or decreased contributions from key member states, primarily the United States. The UN's peacekeeping and development agencies have been grappling with tightening budgets; for instance, the current 2024-2025 peacekeeping budget amounts to $5.59 billion, significantly less than the $9.9 billion in 2018.
These financial deficits have forced several UN agencies to take harsh measures. The International Organization for Migration has already reduced staff, while the Office for the Coordination of Humanitarian Affairs plans to reduce its workforce by 20%. The UN Refugee Agency and the World Food Programme aim to slash costs by 30%, and the World Health Organization anticipates a $600 million budget deficit this year. Further announcements of similar cuts are imminent.
The root cause is a broader trend of declining or delayed financial commitments, particularly from major contributors like the USA. Political dynamics, negotiation obstacles, and resistance from both member states and UN agencies themselves make restructuring efforts arduous. As a result, the UN is under pressure to reduce operational expenses and streamline its functions to address persistent funding gaps.
In an internal memorandum, UN Controller Chandramouli Ramanathan requested UN employees to submit detailed cost-cutting proposals by June 13. The memorandum did not disclose reasons for the delayed or reduced payments from the USA. However, it stated that the cuts were part of an audit and that the aim was to ensure that the UN fulfills its purpose, supports 21st-century multilateralism, and alleviates human suffering, creating a better future for all. The cuts are set to take effect on January 1, 2026.
Meanwhile, UN Secretary-General Antonio Guterres is considering reductions or mergers of individual UN departments or relocating UN locations to more affordable cities. He warned that difficult decisions lie ahead, and a simple avoidance of these decisions would lead to a dead end.
In her application speech for the office of the President of the UN General Assembly, German Green politician Annalena Baerbock spoke of "strong financial and political pressure" facing the UN, which she deemed "needed more than ever." She also highlighted the challenges the UN is facing, but emphasized its crucial role in the world. Her election will take place on June 2 in New York.
Sources: ntv.de, mau/rts
- The European Parliament, the Council, and the Commission, in alignment with the Community policy, are closely monitoring the financial instability at the United Nations and the potential impact on general-news, business, and politics within the European Union.
- As budget cuts loom for the United Nations, several key UN departments may face restructuring or potential relocation, as proposed by UN Secretary-General Antonio Guterres, potentially impacting the flow of finance and operations in the global business and political landscape.
