Global Economy News
LAST UPDATE: May 30, 2025
UN may cut staff by 20%, internal memo says
The United Nations plans to reduce its workforce by 20%, approximately 6,900 jobs, due to a significant budget shortfall exacerbated by the U.S. withholding dues and cutting foreign aid.
Insight
The substantial staff reduction reflects the financial vulnerabilities of international organizations reliant on member contributions. The U.S.’s decision to withhold funds has a cascading effect, prompting the UN to implement austerity measures. This downsizing may impair the UN’s ability to execute its global missions effectively, including humanitarian aid, peacekeeping, and development programs. It also raises concerns about the organization’s capacity to respond to emerging global crises. The situation underscores the need for diversified funding sources and financial reforms to ensure the UN’s sustainability and operational effectiveness.