The United Nations is preparing for significant staff reductions and structural changes beginning January 1, as part of a sweeping reform initiative known as “UN80.” The move is part of a broader effort to modernize the organization and improve efficiency in the face of mounting financial pressures and global demands.
What are the Reasons?
In an internal memo seen by Reuters, U.N. Controller Chandramouli Ramanathan described the overhaul as “an ambitious effort to ensure that the United Nations is fit for purpose to support 21st-century multilateralism, reduce human suffering and build better lives and futures for all.” More specifically, the U.N Secretariat is planning to reduce its $3.7 billion budget by 20% and eliminate approximately 6,900 positions. He stressed the urgency of the plan and called on staff for their cooperation as the U.N. pushes ahead with an “aggressive” timeline.
FILE PHOTO: UN Secretary-General Antonio Guterres attends a press conference on the day of a meeting to discuss future of stalled peace talks over the divided island of Cyprus at the United Nations in Geneva, Switzerland, March 18, 2025. REUTERS/Pierre Albouy/Pool/File Photo
U.N. Secretary General Antonio Guterres has also addressed the upcoming changes, outlining a potential reorganization that would consolidate major departments, cut redundancy, relocate personnel to less expensive locations, and eliminate overlapping bureaucracy. Speaking to diplomats on May 12, Guterres acknowledged the difficulties ahead: “These are times of peril, but they are also times of profound opportunity and obligation. Make no mistake: uncomfortable and difficult decisions lie ahead.”
Tom Fletcher, head of the U.N.’s Office for the Coordination of Humanitarian Affairs, informed staff in April that the agency would likely reduce its workforce by 20% to cover a $58 million funding gap. Meanwhile, a U.S. State Department spokesperson declined to comment on the anticipated UN layoffs but confirmed that funding decisions remain under review, with a report due by early August.
Strategic Cuts Amid Uncertain U.S. Support
Although Ramanathan did not directly blame the United States for the cuts, the financial strain is partly attributed to the ongoing funding crisis fueled by delayed and reduced payments from major contributors. The U.S. and China together account for more than 40% of U.N. funding. The situation has worsened with the U.S. failing to pay its assessments and China routinely missing payment deadlines.
Further complicating the situation, the Trump administration has already suspended hundreds of millions of dollars in voluntary contributions, forcing many humanitarian programs to cease operations—an outcome U.N. officials warn could cost lives. The proposed U.S. budget for the next fiscal year, still pending congressional approval, includes drastic cuts or complete elimination of funding for several U.N. programs, including peacekeeping missions.
The UN Security Council votes, Monday, Feb. 24, 2025, at the United Nations headquarters. (AP Photo/Richard Drew)
Richard Gowan, U.N. director at the International Crisis Group, noted that the reform efforts may be partly strategic. “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,” he said. “That’s possible. It’s also possible that the administration will just pocket the cuts and not make any concessions.”
