Reduction of Staff and Budget by 20% Proposed by United Nations
The United Nations is mulling over a substantial restructuring and budget reduction initiative, internally referred to as "UN80," aimed at enhancing efficiency amid financial hardships. The financial constraints have led the world organization to consider cutting approximately 6,900 jobs and reducing its operating budget of $3.7 billion by 20%.
According to a memo obtained by Reuters, the cuts are expected to affect around 20% of the Secretariat staff, potentially impacting roles across various departments. UN Controller Chandramouli Ramanathan asks staff to submit detailed proposals for cuts by June 13 as part of this review process.
Secretary-General Antonio Guterres is contemplating reducing or merging individual departments, consolidating some agencies, and relocating staff to lower-cost cities to save costs. Guterres warns that difficult decisions lie ahead, stressing that avoiding these decisions could lead to a dead end.
The UN's financial crisis is partly due to arrears from member states, with the United States owing nearly $1.5 billion in unpaid dues. The US, which contributes about 22% of the UN's annual budget, has been reducing its foreign aid under previous administrations, exacerbating the financial strain. It remains unclear whether the reforms are designed to pressure the US into releasing more funds.
Cuts will take effect on January 1, 2026. Initially, vacant roles will be affected, followed by occupied positions according to internal regulations. Department heads have been asked to submit proposals for reductions.
Sources: ntv.de, rts
- The restructuring and budget reduction initiative, UN80, will likely influence multiple employment policies within the UN, as department heads are asked to submit proposals for reductions, affecting roles across various departments, including community policy, business, politics, general-news, and finance.
- As the UN faces financial challenges, one strategy being considered is relocating staff to lower-cost cities to save costs, potentially impacting employment policies and the overall business environment of these cities, thereby intertwining UN's employment policy with local economic dynamics and politics.
