Facing a deepening financial crisis, the United Nations is preparing to slash its $3.7 billion operating budget by 20% and cut approximately 6,900 jobs.
The directive, circulated by UN Controller Chandramouli Ramanathan, instructs departments to submit detailed proposals for the cuts by June 13. The reductions, set to take effect on January 1 with the start of the next budget cycle, are part of a broader reform effort launched in March under the initiative titled “UN80.”
“This is an ambitious undertaking to ensure the United Nations is ready to meet the challenges of 21st-century multilateralism, alleviate human suffering, and create better futures for all,” Ramanathan wrote. While the memo did not mention specific contributors to the financial shortfall, a significant factor is the failure of the United States—traditionally the UN’s largest funder—to meet its obligations.
The U.S. currently owes nearly $1.5 billion to the UN, covering both arrears and the current fiscal year. Under former President Donald Trump, the U.S. also slashed foreign aid budgets, severely impacting UN humanitarian agencies. These cuts have forced the UN to halt or scale back numerous life-saving programs.
Adding to the financial strain are China’s recurring late payments. Together, the U.S. and China account for over 40% of the UN’s overall funding.
Drastic Measures on the Horizon
UN Secretary-General António Guterres has publicly acknowledged the scale of the crisis and is contemplating sweeping structural changes. In briefings to diplomats this month, he said the organization is weighing consolidation of departments, relocating staff to lower-cost cities, eliminating redundancies, and streamlining operations to cut inefficiencies.
“These are times of peril, but also of profound opportunity and responsibility,” Guterres said during a May 12 briefing. “Make no mistake: tough and uncomfortable decisions lie ahead. It may be tempting to delay, but that path leads to a dead end.”
Guterres’ proposals mark one of the most significant potential overhauls in the UN’s history.
Uncertain Impact on U.S. Policy
Whether the UN’s belt-tightening will influence U.S. policy remains unclear. Richard Gowan, UN director at the International Crisis Group, suggested that the move could be a strategic attempt to ease tensions with Washington.
“There’s a hope that if Guterres demonstrates he’s serious about cutting costs, the U.S. administration might back off from threats to eliminate UN funding entirely,” Gowan said. “But there’s also the risk that the cuts will be accepted without any reciprocal concessions.”
The U.S. State Department has yet to comment directly on the proposed UN cutbacks. A spokesperson stated that funding for the UN and other international bodies remains under review, with a Trump-mandated report expected by August.
In April, Tom Fletcher, head of the UN Office for the Coordination of Humanitarian Affairs, warned staff that the agency would need to reduce its workforce by 20% due to a $58 million funding shortfall caused primarily by U.S. aid reductions.
As the UN braces for severe downsizing, many within the organization fear the cuts will undermine its ability to carry out critical missions—especially in areas like peacekeeping, humanitarian relief, and development assistance. The coming months will reveal whether the international community is willing to step in—or whether the UN will be forced to do more with far less.
