The United Nations is preparing for one of its steepest financial contractions in years, with Secretary-General António Guterres confirming that the organisation will cut its 2026 budget by $577m and slash its workforce by 18.8%.
Guterres unveiled a $3.24bn budget for next year — down 15.1% from 2025 — citing an escalating liquidity crisis driven by overdue payments from member states. The UN says the shortfall, now at $1.59 trillion, is tied to unpaid dues from major countries including the US, China, Russia and Mexico.
Amid the cuts, Guterres stressed that some critical operations will remain fully funded. The budget for UNRWA, which supports millions of Palestinian refugees, will not be reduced. “UNRWA is essential to the humanitarian response in Gaza, and I will not allow cuts that could cripple its work,” he said. Funding for Africa’s development advocacy will also stay unchanged.
The UN plans to eliminate 2,681 positions across departments, identifying functions that can be outsourced or streamlined. Although 18% of current posts are already vacant, those gaps are unrelated to strategic decisions and stem from the organisation’s broader liquidity struggles.
Special political missions will also face substantial reductions, with a 21.6% cut bringing their 2026 budget to $543.6m. Some missions will shut down entirely, while others will scale back operations.
As part of cost-saving measures, the UN will further shrink its presence in New York. Two office leases will be terminated by 2027, generating $24.5m in annual savings from 2029. Since 2017, the organisation has saved $126m through similar downsizing efforts.
