Crisis Budget: UN to cut $577M and nearly one-fifth of jobs

UN Secretary-General António Guterres has unveiled a sharp reduction to the organisation’s 2026 regular budget, proposing a cut of $577 million and an 18% reduction in staffing, as the United Nations faces one of its most severe liquidity crises in years.

Presenting his plan to the General Assembly’s budget committee on Monday, Guterres said he intends to bring next year’s core budget down to $3.238 billion, a 15% decrease compared with 2025. The proposal would see the UN’s staffing table fall to 11,594 posts, including Special Political Missions — a reduction of 2,681 positions.

Guterres said the changes would require one-off costs tied to staff separations, relocations, and temporary support in human resources, legal affairs, and the administration of justice to ensure the transition is managed “responsibly.”

He warned, however, that even sweeping cuts will not stabilise the UN’s financial situation unless member states settle their outstanding contributions.

“Liquidity remains fragile,” Guterres said, noting that the UN ended 2024 with $760 million in arrears, of which $709 million has still not been paid. In addition, the UN has yet to receive $877 million in 2025 dues, pushing total arrears to $1.586 billion.

Guterres repeated his call for member states to pay assessed contributions “in full and on time,” adding that the Secretariat is operating far below approved budget levels and has proposed temporarily suspending the return of credits to safeguard liquidity.

“It is difficult for us to return money that we never received,” he said, urging members to agree on a temporary mechanism that protects their rights while allowing refunds once the UN’s cash position improves.

The United States — which pays the maximum 22% of the regular budget — remains the largest contributor. President Donald Trump has criticised the UN’s performance and signalled he wants to reduce US funding, adding uncertainty to future budget negotiations.

The UN is marking its 80th anniversary this year, and Guterres has launched a reform effort, known as UN80, to streamline operations and reduce expenditure.

Peacekeeping, which is funded through a separate budget, is also under pressure. Senior officials warned in October that a lack of funds could force cuts to a quarter of peacekeeping personnel across nine missions.

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