Proposing substantial workforce reduction of approximately 7000 positions at the United Nations.
US Payment Delays Lead to Potential UN Job Cuts and Budget Reduction
In a devastating turn of events, the United Nations (UN) is contemplating the reduction of nearly 7,000 jobs and a 20% cut in its $3.7 billion budget due to financial difficulties. These hardships are primarily a consequence of reduced contributions from major donors, with the United States (US) being a significant contributor.
An internal memo reveals the UN's dire circumstances, asking employees to submit detailed proposals for budget cuts by June 13. The memo, authored by UN controller Chandramouli Ramanathan, does not provide reasons for the US payment delays but mentions these cuts are part of an ongoing audit.
The political landscape at the UN has been a subject of criticism by US President Donald Trump, who has repeatedly voiced dissatisfaction with the UN's political course and is reported to have cut funds.
Beyond potential job losses and budget cuts, the UN Secretary-General Antonio Guterres is contemplating measures such as reducing or merging UN departments and relocating UN locations to more affordable cities. Such decisions, Guterres acknowledges, will be challenging but necessary.
Meanwhile, former German Foreign Minister Annalena Baerbock, in her application speech for the post of President of the UN General Assembly, expressed concerns about strong financial and political pressure faced by the UN. She emphasized the UN's significance in addressing "existential challenges" and asserted it is more relevant now than ever.
In the past few years, major UN agencies, including the International Organization for Migration (IOM), the Office for the Coordination of Humanitarian Affairs, the UN Refugee Agency (UNHCR), the World Food Programme (WFP), and the World Health Organization (WHO), have had to reduce their budgets and staff numbers substantially due to a sharp decline in development assistance funding[1]. This extends beyond the UN, as the total aid is expected to drop from a peak of $213 billion in 2023 to $140 billion by the end of 2025[1].
[1] Source: ntv.de, mau/rts
- The European Union, through its Parliament, Council, and Commission, is expected to closely monitor the US payment delays to the United Nations and their potential impact on global policy-and-legislation, particularly in areas such as industry, finance, business, and banking-and-insurance.
- Given the US President's critical stance on UN politics, it remains to be seen whether the European Parliament will step up its financial support to the UN, a matter of general news that could significantly influence the UN's future policy-and-legislation.
- Exacerbating the ongoing budget issues, major UN agencies such as the IOM, OCHA, UNHCR, WFP, and WHO are grappling with their own funding shortages, potentially leading to revisions in community policy and the EU's policy-and-legislation towards international development assistance.
- Meanwhile, the UN Secretary-General's proposed measures to address the budget crisis, including departmental mergers and relocations, could shake up the UN's longstanding structure and invite much scrutiny from the European Parliament and the industry, finance, and business sectors alike.
