U.N. Faces Financial Crunch: Major Budget Cuts Ahead

The United Nations is gearing up for a significant financial overhaul, enacting a 20% reduction of its $3.7 billion budget and impacting approximately 6,900 jobs. This decisive move, detailed in an internal memo reviewed by Reuters, arises amid a financial crisis exacerbated by the United States' failure to meet its funding obligations.

U.N. Controller Chandramouli Ramanathan mentioned the cuts are part of an initiative termed "UN80," aimed at adapting the U.N. for modern-day multilateralism. Meanwhile, Secretary General Antonio Guterres considers consolidating departments and reallocating resources worldwide as part of a massive restructuring plan.

The situation remains tense as U.S. funding cuts, particularly under President Trump's administration, continue to strain resources. Diplomatic sources suggest that demonstrating budgetary prudence might persuade the U.S. administration to reconsider additional cuts; however, the outcome remains uncertain.

(With inputs from agencies.)