The UN refugee agency (UNHCR) announced on Monday that it will eliminate 3,500 staff positions, representing nearly a third of its workforce costs, and scale back its global assistance due to a significant funding shortfall.
This decision follows a comprehensive review of its operations and expenditures, triggered by a sharp decline in humanitarian funding.
The Office of the United Nations High Commissioner for Refugees is among several UN and private aid organisations severely impacted by reduced contributions, particularly from the United States.
The US, historically UNHCR’s largest donor, has significantly cut its foreign aid under a radical spending review initiated by President Donald Trump.
Other nations have also curtailed their humanitarian spending. UNHCR chief Filippo Grandi revealed in April that the United States previously accounted for over 40 per cent of UNHCR’s contributions, amounting to $2 billion annually.
Grandi stated that “In light of difficult financial realities, UNHCR is compelled to reduce the overall scale of its operations.”
He added that the agency will now prioritise “activities that have the greatest impact for refugees” while streamlining its Geneva headquarters and regional offices.
This restructuring includes closing or downsizing offices worldwide and implementing a nearly 50 per cent reduction in senior positions. In addition to the 3,500 permanent staff positions being discontinued, hundreds of temporary workers have also been released due to the financial deficit.
Overall, UNHCR anticipates a global reduction in staffing costs of approximately 30 per cent.
The funding cuts have already impacted various programmes, including financial aid to vulnerable families, health services, education, and water and sanitation initiatives.
UNHCR is collaborating with other organisations and refugee-hosting countries to try and mitigate the adverse effects on refugees.
The agency estimates that by the end of 2025, its available funding will revert to levels seen a decade ago, despite the number of forcibly displaced people nearly doubling over the same period to over 122 million.
Grandi affirmed the agency’s unwavering commitment: “Even as we face painful cuts and lose so many dedicated colleagues, our commitment to refugees remains unshakeable.”
He stressed that despite scarcer resources and reduced capacity, UNHCR will continue to respond to emergencies, protect refugee rights, and pursue solutions, citing the return of nearly two million Syrians since December.
Current major displacement crises include Sudan (14.3 million), Syria (13.5 million), Afghanistan (10.3 million), and Ukraine (8.8 million). By the end of 2024, UNHCR reported that one in every 67 people worldwide was forcibly displaced.
