The United Nations is set to lay off approximately 6,900 employees and slash its 3.7 billion dollar operating budget by 20 per cent, in one of the most significant restructuring efforts in its history.
The cuts follow mounting financial strain, mainly due to delayed and reduced contributions from the U.S. and China, which fund over 40 per cent of the UN’s budget. UN Controller Chandramouli Ramanathan said the cuts are part of “UN 80,” a broad overhaul to prepare the organisation for modern global challenges.
Earlier this month, Secretary-General António Guterres acknowledged the financial crisis and outlined plans for departmental mergers, staff relocation, and streamlining operations to cut costs.
The memo, authored by UN Controller Chandramouli Ramanathan, instructs department heads to submit detailed budget-cut proposals by 13 June, in preparation for the 2026 fiscal year beginning 1 January. This drastic measure follows increasing financial strain, largely attributed to delayed and reduced contributions from key member states—most notably, the United States.
Although Ramanathan did not directly name the U.S. in the memo, he described the restructuring as part of “UN80”—a broader organisational overhaul intended to prepare the UN for modern multilateral challenges.
“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,”— Chandramouli Ramanathan, as quoted in Reuters. He emphasised the need for cooperation and urgency in executing the plan’s aggressive timeline.
In public briefings this month, UN Secretary-General António Guterres acknowledged the severity of the crisis, stating that the organisation faces a period that demands “uncomfortable and difficult decisions.” He signalled a wide-ranging transformation of the UN system, including departmental mergers, relocation of staff to lower-cost locations, elimination of redundant bureaucracy, and cutting operational overlaps.