The United Nations has announced a sweeping directive to cut 20 percent of its global staff working under its regular budget, amounting to about 2,800 positions, in response to a deepening funding shortfall that threatens the functioning of multiple international missions and humanitarian operations.

UN spokesperson Stephane Dujarric disclosed on Friday, May 30, 2025, that over 60 UN offices and agencies have been instructed to submit detailed proposals for personnel reductions by June 13. These cuts are targeted at about 14,000 posts and are a part of the larger reform agenda under UN Secretary-General Antonio Guterres' UN80 initiative, which marks the world body’s 80th anniversary later this year.

The UN80 reform plan, launched in March 2025, seeks to restructure the global institution to make it leaner and more efficient in the face of modern challenges. A memo from UN Controller Chandramouli Ramanathan emphasised the need for a 15 to 20 percent reduction in the UN’s $3.72 billion regular budget. The focus is on consolidating functions, eliminating redundancies and ensuring financial sustainability.

The agencies affected by the staff cut order include those engaged in political affairs, humanitarian aid, refugee support, gender equality, trade, climate and environment, and urban development. The UN Relief and Works Agency for Palestine Refugees (UNRWA) is also among those directed to reduce staff.

This unprecedented restructuring excludes peacekeeping missions, which operate under a separate financial arrangement, and agencies funded by voluntary contributions, such as the World Food Programme (WFP) and UNICEF.

Root of the Crisis

The UN has faced a persistent financial crisis for at least the past seven years, with many member states failing to pay their dues on time or in full. According to the UN’s financial records, only 152 of the 193 member nations paid their full dues in 2024. Notably, the United States, the organisation’s largest contributor, was among the 41 nations that defaulted.

Under the current funding model, the US is expected to contribute 22 percent of the UN’s regular budget. China, now the second-largest economy, has had its share raised to 20 percent.

Mr. Guterres has strongly denied that the reforms are linked to US foreign aid cuts, which became more prominent under former President Donald Trump. Instead, he attributed the restructuring to long-standing financial weaknesses in the UN's structure and the need for modernisation.

Internal Directives and Restructuring Plans

The internal memo distributed to all affected agencies laid out clear instructions:

• Assess functions based on efficiency

• Prioritise based on operational impact

• Identify overlapping or redundant roles for consolidation or elimination

Some UN bodies had already anticipated drastic measures. The World Food Programme is expected to cut up to 30 percent of its staff, and the UN High Commissioner for Refugees (UNHCR) has reportedly planned a 30 percent cut at its headquarters and regional offices, along with a 50 percent reduction in senior-level positions.

Similarly, UNICEF and the Office for the Coordination of Humanitarian Affairs (OCHA) have either initiated or are planning job cuts.

These measures are aimed at reshaping the United Nations into a more agile and effective institution, better suited to today’s global challenges, but they come with a significant human cost, especially for personnel involved in relief and development operations.

Power Imbalance and Reform Challenges

One of the major hurdles in UN reform is the disparity in power and priorities among its 193 member states. Although the Secretary-General functions as the chief executive officer, it is the General Assembly — representing all nations — that holds the ultimate decision-making authority on budgets and operations.

The proposals submitted by June 13 will be reviewed and incorporated into Mr. Guterres’ 2026 budget proposal, which is expected to be formally adopted by the General Assembly in December.

Over the years, successive UN secretaries-general have attempted to restructure the organisation, with mixed results. The latest reform attempts underscore a renewed urgency to align the UN's scope with its financial capabilities in a world that is becoming increasingly polarised.

Possible Impact on Ground Operations

Observers fear that these cuts, particularly within humanitarian agencies, could seriously hamper relief work in conflict zones and disaster-hit regions. With global needs rising — from war-displaced populations in Gaza and Sudan to famine zones in Yemen and parts of Africa — the planned retrenchments are likely to disrupt aid delivery and weaken crisis response systems.

UN officials have warned that without adequate funding or alternative financial mechanisms, vital operations may be suspended, affecting millions of vulnerable people globally.

A Call for Payment Discipline

To address the funding gap in the long run, the UN is likely to push for greater financial discipline among member states. This includes timely payment of dues and reassessment of each country’s share in line with its economic growth.

As the UN enters its ninth decade, the reforms under UN80 represent a crucial test of whether the institution can adapt, survive and remain relevant in a world marked by economic stress, climate emergencies, and geopolitical conflict.

Conclusion

The UN's decision to cut 20 percent of its staff marks one of the most significant internal overhauls in recent memory. While designed to tackle a chronic funding crisis, the move could redefine how the world’s largest multilateral institution operates in the 21st century. Whether these reforms succeed or falter will depend not just on internal discipline, but also on global cooperation, member accountability, and a renewed commitment to the principles of international solidarity.

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