Latest news with #UNbudgetcuts
Japan Times
2 days ago
- Business
- Japan Times
U.N. eyes budget and job cuts for 2026 as U.S. scales back aid
The United Nations Secretariat is preparing to cut its $3.7 billion budget by 20% and slash about 6,900 jobs, according to an internal memo. The directive, which asks staff to detail cuts by June 13, comes amid a financial crisis triggered in part by the United States, which annually funds nearly a quarter of the world body. In addition to U.S. foreign aid cuts under U.S President Donald Trump that have gutted U.N. humanitarian agencies, the U.S. owes — for arrears and the current fiscal year — nearly $1.5 billion. The memo's author, U.N. Controller Chandramouli Ramanathan, did not cite the U.S. failure to pay. He noted that the cuts are part of a review launched in March dubbed "UN80." "It is 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," Ramanathan said. "I count on your cooperation for this collective effort whose aggressive timelines are recognized." The cuts would take effect Jan. 1, the start of the next budget cycle. In public briefings to U.N. diplomats this month, U.N. Secretary-General Antonio Guterres said he is considering a massive overhaul that would merge major departments and shift resources across the globe. He said the U.N. may consolidate some agencies, trim others, move staff to cheaper cities, cut duplication and eliminate redundant bureaucracy. In public briefings to U.N. diplomats this month, U.N. Secretary-General Antonio Guterres said he is considering a massive overhaul that would merge major departments and shift resources across the globe. | reuters "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 roads. But that road is a dead end." The U.S. failure to pay its assessments has also created a liquidity crisis for the U.N., a problem exacerbated by China's repeated late payments. Together, the two nations account for more than 40% of U.N. funding. In addition, the Trump administration has withdrawn hundreds of millions of dollars in discretionary funds, forcing the abrupt halt of dozens of humanitarian programs that U.N. officials have said will cost lives. The proposed U.S. budget for the coming year, which must be approved by Congress, has eliminated or drastically reduced funding for several U.N. programs, including peacekeeping. A U.S. State Department spokesperson did not comment on the proposed U.N. cuts, but said a Trump-ordered study was due by early August. "Funding for the U.N., along with other international organizations, is currently under review,' the spokesperson said. In April, Tom Fletcher, who leads the United Nations Office for the Coordination of Humanitarian Affairs, told employees that U.S. funding cuts would force the agency to trim 20% of its staff to address a shortfall of $58 million. Richard Gowan, U.N. director at the International Crisis Group, said it was unclear if the cuts will affect the Trump administration position. "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 U.N.,' Gowan said. "That's possible. It's also possible that the administration will just pocket the cuts and not make any concessions.'
The National
3 days ago
- Business
- The National
UN plans 20% budget cut amid liquidity crisis, internal memo says
The UN is preparing to slash its $3.7 billion budget by 20 per cent in 2026, according to an internal memo. The order, seen by The National, requires staff to outline reductions by June 13 and could result in thousands of jobs lost. UN Controller Chandramouli Ramanathan said the cuts are part of the UN80 reform initiative launched in March to ensure the world body becomes "more cost-effective" by taking "bold and immediate steps" to improve the way it functions. "It is 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," Mr Ramanathan said, urging staff co-operation amid "aggressive timelines". "Downgrading of posts and positions may also be proposed to reduce the posts costs." The cutbacks will take effect on January 1, the start of the next budget cycle. On May 13, UN Secretary General Antonio Guterres told member states at an informal meeting that the world body's liquidity crisis stems largely from unpaid membership dues. 'The liquidity crisis is caused by one simple fact: the arrears. We have a huge debt to the organisation, essentially from one member state and a few others,' Mr Guterres said. 'We won't solve the liquidity crisis by reforming the organisation. We solve it by countries paying their contributions in full and on time." Mr Guterres added that this would improve the UN's efficiency and mitigate the crisis. In April, Tom Fletcher, the head of UN humanitarian affairs, informed staff that due to US funding reductions, the agency would need to cut 20 per cent of its workforce to cover a $58 million budget gap. The US owes the world body about $2.8 billion as of early 2025, according to UN figures. The total includes about $1.5 billion in unpaid assessments for the UN's regular budget and about $1.3 billion for peacekeeping operations and international tribunals. Under the UN's funding formula, the US is responsible for 22 per cent of the regular budget and about 27 per cent of peacekeeping costs.
