The United Nations is undertaking its most significant cost-cutting effort, with Secretary-General António Guterres announcing a 20% reduction in the organization’s regular budget, amounting to about $740 million in cuts.
This move comes as the UN faces mounting financial strain, much of it triggered by the uncertain status of U.S. contributions, which traditionally account for nearly 22% of UN’s core budget.
The United States, under renewed conservative leadership, has suspended funding to several UN agencies and is reviewing its extensive financial role within the organization.
“We’re not going to be part of organizations that pursue policies that hamper the United States,” said Deputy State Department spokesperson Tommy Pigott, signalling further reductions in U.S. support.
Guterres, while framing the reform under the banner of “UN80” in recognition of the institution’s upcoming 80th anniversary, acknowledged that budgetary realities, not symbolism, are driving the overhaul.
“Budgets at the United Nations are not just numbers on a balance sheet, they are a matter of life and death for millions around the world,” he said, defending the reductions as necessary to preserve core operations amid a crisis.
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The regular budget, currently $3.7 billion, will be brought to its lowest level since 2018, and approximately 7,000 jobs are expected to be eliminated across departments ranging from peacekeeping to humanitarian support.
Guterres has directed department heads to identify redundancies, consolidate operations, and explore moving posts to lower-cost duty stations as part of the cost-reduction effort, with final restructuring details expected in the UN’s September budget submission.
While the Secretary-General insists the cuts are part of a long-overdue modernization plan, the internal response has been sharply critical.
UN staff in Geneva recently passed a motion of no confidence in Guterres, denouncing what they described as a rushed and unfocused strategy.
“Staff felt its slash and burn approach lacked focus, had no strategic purpose, and was making the UN more top-heavy and bloated,” said Ian Richards, president of the UN Staff Union in Geneva.
The motion is symbolic, but reflects widespread anxiety that the cuts could weaken the institution’s ability to respond to global crises.
Some argue that the looming budget shortfalls would have forced change regardless, and that acting early gives the UN a chance to reshape itself before funding dries up entirely.
With global demand for aid and diplomacy increasing, Guterres is betting that deep cuts now may allow the institution to remain effective and relevant in a rapidly shifting geopolitical landscape.
