United Nations, May 30 – The United Nations Secretariat is preparing to slash nearly 7,000 jobs and cut its $3.7 billion budget by 20%, according to an internal memo seen by Reuters, as the organization grapples with a mounting financial crisis fueled in part by unpaid U.S. contributions.
The memo, signed by U.N. Controller Chandramouli Ramanathan, directs department heads to propose cost-cutting measures by June 13 as part of an internal reform initiative known as “UN80.” The cuts are scheduled to take effect on January 1, at the beginning of the next budget cycle.
Ramanathan described the plan as an “ambitious effort” to ensure the U.N. remains effective in supporting 21st-century multilateralism and tackling global crises, despite shrinking resources. The directive comes as U.N. leadership warns of tough decisions ahead.
“These are times of peril, but they are also times of profound opportunity and obligation,” Secretary-General António Guterres said in a recent address. “Uncomfortable and difficult decisions lie ahead. It may be easier and even tempting to ignore them. But that road is a dead end.”
The funding crisis is being driven by delayed and reduced payments from major contributors, particularly the United States, which typically provides nearly a quarter of the U.N.’s operating budget. Washington currently owes the U.N. an estimated $1.5 billion in arrears and current dues. China, the second-largest contributor, has also made repeated late payments, exacerbating the cash crunch.
The Trump administration’s steep cuts to foreign aid and U.N. programs have left a particularly deep impact. Hundreds of millions of dollars in discretionary funding were withdrawn, forcing abrupt halts to dozens of humanitarian efforts. The proposed U.S. budget for the coming year further reduces support for peacekeeping and other key initiatives.
In April, Tom Fletcher, director of the U.N. Office for the Coordination of Humanitarian Affairs, told staff that the agency would need to cut 20% of its personnel due to a $58 million shortfall.
Guterres has floated sweeping reforms to mitigate the financial pressure. These include consolidating agencies, trimming bureaucracy, relocating staff to lower-cost locations, and redirecting resources to critical operations.
Diplomatic observers suggest the reforms may be aimed at softening opposition from the Trump administration. “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 U.N.,” said Richard Gowan, U.N. Director at the International Crisis Group. “That’s possible. It’s also possible that the administration will just pocket the cuts and not make any concessions.”
The U.N. has warned that unless urgent steps are taken, the liquidity crisis could undermine the organization’s ability to respond to global emergencies, promote peace, and support sustainable development initiatives worldwide.
