UN Plans 20% Budget Cut, May Slash 6,900 Jobs Amid Funding Crisis
TEHRAN (Tasnim) - The United Nations is preparing to cut 20% of its $3.7 billion budget and lay off nearly 7,000 staff members, according to an internal memo seen by Reuters, as the organization faces a growing financial crisis linked to delayed payments by key donors, including the United States.
The memo, issued by UN Controller Chandramouli Ramanathan, directs departments to identify potential cuts by June 13.
It outlines sweeping cost-reduction measures under an initiative launched in March, known as "UN80."
"The effort aims to ensure the United Nations is fit for purpose to support 21st-century multilateralism, reduce human suffering and build better lives and futures for all," Ramanathan wrote.
"I count on your cooperation for this collective effort whose aggressive timelines are recognized," he added.
The proposed reductions, including approximately 6,900 job cuts, are set to take effect on January 1, the start of the next budget cycle.
The financial strain follows significant reductions in US contributions under the Trump administration, which has withheld close to $1.5 billion in arrears and current obligations.
In addition, hundreds of millions in discretionary US funding have been withdrawn, leading to the suspension of numerous UN humanitarian programs.
Despite not naming the US in the memo, Ramanathan's directive arrives at a time when the organization's liquidity crisis is intensifying.
The United States and China, which together contribute over 40% of UN funding, have both delayed payments—compounding the financial difficulties.
Secretary-General Antonio Guterres, in recent briefings to diplomats, said he is considering a sweeping overhaul of UN operations.
He proposed consolidating agencies, trimming operations, relocating staff to lower-cost cities, cutting duplication, and eliminating redundant bureaucracy.
"These are times of peril, but they are also times of profound opportunity and obligation," Guterres said on May 12.
"Make no mistake: uncomfortable and difficult decisions lie ahead. It may be easier and even tempting to ignore them or kick the can down the road. But that road is a dead end."
A US State Department spokesperson declined to comment directly on the memo but confirmed that a comprehensive review of UN funding ordered by President Trump is expected by early August.
“Funding for the UN, along with other international organizations, is currently under review,” the spokesperson said.
In April, Tom Fletcher, who leads the UN Office for the Coordination of Humanitarian Affairs, informed staff that US funding cuts would force his agency to reduce its workforce by 20% to manage a $58 million shortfall.
Richard Gowan, UN director at the International Crisis Group, said it remains uncertain whether the proposed cuts will influence US policy.
“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,” Gowan said.
“That’s possible. It’s also possible that the administration will just pocket the cuts and not make any concessions.”
