UN Prepares for Deep Budget Cuts and Job Losses Amid U.S. Funding Crisisk : Michelle Nichols / Reuters

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Summary
The United Nations Secretariat is preparing to reduce its $3.7 billion budget by 20% and eliminate nearly 6,900 jobs by 2026, according to an internal memo seen by Reuters.

Staff have been instructed to submit proposed cuts by June 13, with changes to take effect on January 1. The restructuring is part of the UN80 reform process, which aims to modernize the UN amid financial strain exacerbated by a $1.5 billion arrears owed by the United States. UN Secretary General Antonio Guterres has floated a major overhaul including department mergers, decentralization, and streamlining. The memo, authored by UN Controller Chandramouli Ramanathan, stresses the urgency and ambition of the changes. U.S. non-payment and additional budget cuts under former President Trump have worsened the UN’s liquidity crisis, leading to concerns about humanitarian impacts and political pressure tactics from Washington.

Quotes
“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.” — Chandramouli Ramanathan, UN Controller

“Make no mistake: uncomfortable and difficult decisions lie ahead... But that road is a dead end.” — Antonio Guterres, UN Secretary General

“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.” — Richard Gowan, International Crisis Group

“It’s also possible that the administration will just pocket the cuts and not make any concessions.” — Richard Gowan