UN faces major restructuring amid budget shortfall
The UN is considering laying off 6,900 employees and reducing its budget by 20%. This is due to financial cuts from the United States, which has been one of the main sponsors of the organisation. These decisions aim to adapt to the new financial circumstances.
The UN is facing significant financial challenges after the Trump administration reduced American contributions. According to the German newspaper "Die Welt," the organisation is planning layoffs and budget cuts to adjust to the evolving situation. Contributions from the United States have previously accounted for nearly a quarter of the UN's budget.
An internal memorandum seen by Reuters reveals that the UN intends to cut its budget by approximately $3.7 billion (£2.75 billion).
Employees have been asked to submit savings proposals by 13th June. The cuts are scheduled to take effect on 1st January 2026.
The UN Secretary-General, Antonio Guterres, is also considering restructuring the organisation, including merging departments and relocating offices to more cost-effective locations.
He emphasises that the UN faces difficult decisions that cannot be postponed.
