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UN Faces Big Shake-Up Amid Budget Strains

The reforms are part of the broader "UN80" initiative, launched by Secretary-General António Guterres, which aims to revamp the organization as it approaches its 80th anniversary.
May 3, 2025

The United Nations is quietly considering a bold restructuring plan that could dramatically reshape how the global body works.

A leaked internal memo suggests the UN is exploring ways to merge several of its major agencies into four key pillars: peace and security, humanitarian aid, sustainable development, and human rights.

The proposed changes, still under internal discussion, come at a time when the UN is grappling with serious financial challenges. Many of its agencies have been forced to make deep budget cuts, with some anticipating layoffs and closures of offices. A significant factor behind this crunch is the steep decline in funding from the United States, following a series of reductions in foreign aid during the presidency of Donald Trump.

The confidential six-page draft document—circulated among senior officials—calls for streamlining operations and removing overlapping roles among agencies such as the World Food Programme, UNHCR, UNICEF, and the World Health Organization. The idea is to consolidate these into a single, more efficient humanitarian branch.

The reforms are part of the broader “UN80” initiative, launched by Secretary-General António Guterres, which aims to revamp the organization as it approaches its 80th anniversary. Among the suggestions are relocating staff from expensive cities to more affordable regional hubs, consolidating back-office functions, and even cutting costs in translation and documentation services.

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Some agencies have already begun adjusting to financial realities. The World Food Programme expects to trim 30% of its workforce, while UNHCR is set to reduce costs by the same percentage—closing down some country offices and halving its senior leadership team. UNICEF, too, is bracing for a 20% drop in funding next year.

The UN’s leadership argues that these steps are necessary to keep the organization agile and capable in today’s fast-changing world. By reducing internal fragmentation and focusing on priority areas, they believe the UN can maintain its global relevance even with fewer resources.

Still, these plans are far from finalized. Implementing them will require buy-in from all 193 member states—no small task in a world where political interests often pull in different directions. But for many insiders, the urgency is clear: either evolve or risk becoming increasingly ineffective in the face of global crises.

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