More than 200 jobs cut at International Labour Organization as US slashes funding

The International Labour Organization (ILO), headquartered in Geneva, has announced the loss of around 225 jobs due to significant funding cuts, mainly caused by the reduction of voluntary contributions from the United States under President Donald Trump.

These job cuts affect staff both at the Geneva office and in field operations.

ILO Director-General Gilbert Houngbo expressed deep concern over the impact on staff morale and acknowledged that the organization is under serious financial strain. To manage costs, he mentioned the possibility of relocating some operations from expensive Geneva to more affordable cities such as Turin, Budapest, Bonn, or even further afield to places like Doha and Pretoria.

Other UN agencies, like the International Organization for Migration, have also started laying off short-term staff. Houngbo warned that even more job losses across UN bodies could follow, as several international donors, not just the U.S., are pulling back funding. Since the U.S. is the largest contributor to both assessed and voluntary funding, its withdrawal poses a double challenge for the ILO.

The U.S. currently accounts for 22% of the ILO's $880 million budget for 2026–2027, which is set to be reviewed at the upcoming International Labour Conference. Houngbo said a revised budget might be necessary, something that hasn't happened in recent memory. In response, the ILO is preparing a business continuity plan, freezing new external hiring, and launching a voluntary redundancy program to deal with the uncertain financial future.

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