ILO Faces Job Cuts Amid U.S. Funding Reductions

The International Labour Organization (ILO), based in Geneva, is facing significant job cuts due to reduced U.S. funding, which has forced the agency to eliminate around 225 positions. This move, announced by Director-General Gilbert F. Houngbo, highlights the impact of the Trump administration's decision to cut voluntary contributions to the U.N. agency.

Efforts are underway to alleviate financial strain, including exploring the possibility of relocating some ILO operations outside of high-cost Geneva. Potential cities under consideration include Turin, Budapest, Bonn, Doha, and Pretoria. The move is part of broader discussions on cost-cutting measures to ensure the organization's sustainability.

The U.S. is the largest contributor to the ILO's budget, accounting for 22% of its $880 million funding for 2026-2027. With financial support from other member states also waning, Houngbo is formulating a business continuity plan which includes a freeze on external recruitment and launching a voluntary redundancy program.

(With inputs from agencies.)