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UNICEF Under Strain: Budget Cuts, Job Losses, and Structural Overhaul
UNICEF is facing one of its most serious contractions in recent history, driven by the Trump administration’s January 2025 freeze on U.S. foreign aid and by steep declines in funding from other traditional donors, especially in Europe.
Since January 24, 2025, UNICEF job postings on Devex have dropped by 52.1% compared to the same period in 2024. This represents a sharp decline across all major contract types. Full-time staff positions and long-term consulting roles were especially hard-hit. While short-term contracts fared somewhat better, they too saw a significant decline.
In late May, UNICEF leadership announced a major cost-cutting plan. Managers at headquarters and in regional offices were instructed to reduce core budgets by 25%. The agency will also restructure its field presence, consolidating its seven regional offices into four newly designated “Centers of Excellence.” These will be located in Amman (Jordan), Bangkok (Thailand), Nairobi (Kenya), and Panama City (Panama).
UNICEF will also phase out programming in high-income countries in Europe. Its offices in Sudan and Djibouti are to be absorbed into the regional structure for eastern and southern Africa.
Looking ahead, UNICEF estimates it will face a 20% reduction in donor funding in 2026 compared to 2024. These changes reflect not only the immediate fallout from the U.S. aid freeze but also a broader retreat by European donors and governments.
Internally, the cuts have sparked growing concern and pushback among staff. Many fear that UNICEF’s ability to maintain global operations and deliver for children will be severely compromised. Others point to the opaque nature of the restructuring process and fear additional waves of job losses.
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