UN financial crisis puts thousands of jobs — and missions — at risk

The United Nations is preparing to eliminate thousands of jobs as it slashes its 2026 core budget by roughly US$577 million, one of the most significant reductions in its history. The cuts amount to about 15 per cent of the organisation’s regular budget and will result in the loss of nearly one in five staff posts worldwide, according to details released by the UN.

Revised estimates presented to budget officials reduce the core budget to about US$3.24 billion from the current US$3.8 billion, Al Jazeera reported. The UN said the restructuring reflects the scale of its financial strain, driven by mounting unpaid membership dues and a growing cash shortfall.

The Guardian reported that more than 2,600 jobs are expected to be cut across the UN system, with some estimates placing the figure closer to 3,000. The losses will primarily affect the UN Secretariat but are also likely to add pressure on peacekeeping, humanitarian and development programmes funded outside the regular budget.

UN Secretary-General António Guterres told the General Assembly that about 18 per cent of UN posts are already vacant as the organisation struggles to manage its finances. While programmes supporting least developed countries, peacebuilding and the resident coordinator system will be partially shielded, other areas will absorb deeper reductions.

The budget crisis is closely tied to rising arrears. Multiple outlets have reported that member states owe the UN close to US$1.6 billion, including several hundred million dollars for 2025 alone. The United States, which typically covers 22 per cent of the regular budget, plans to reduce its contributions by 80 per cent in 2026 as part of wider cuts to foreign aid, The Guardian reported.

Guterres has submitted the proposal — including the job reductions — to the General Assembly’s budget committee. The plan is accompanied by a reform initiative, branded “UN80”, aimed at improving operational efficiency as the organisation approaches its 80th anniversary.

The shift will have implications for staff across the multilateral system, including Canadian nationals who work in New York, Geneva and field operations. Cuts are also expected to affect specialised agencies that depend heavily on UN budget flows and US contributions.

The budget must still be approved by member states, with negotiations expected to continue over the coming months. If adopted, implementation will begin in 2026 with a phased restructuring across the organisation.