UN to Cut 2026 Budget by $577m by slashing workforce

United Nations Secretary-General António Guterres has announced significant budget and staffing cuts for 2026 as member states fall behind on their financial obligations, leaving the organisation facing a funding gap of $1.59 trillion.

Guterres presented next year’s budget on Monday, setting it at $3.24 billion, a reduction of $577 million compared with 2025. According to a separate UN statement, the shortfall stems largely from unpaid dues owed by the United States, China, Russia and Mexico as of September.

Despite the sweeping cuts, Guterres confirmed that funding for the UN agency for Palestinian refugees (UNRWA) will remain unchanged due to escalating humanitarian needs in Gaza. “I made the decision to exempt UNRWA from any reductions that would have dramatic consequences on the backbone of the entire humanitarian response in Gaza,” he said. Budgets for the Development Account and the UN’s advocacy work on Africa’s development will also stay at 2025 levels.

To manage the deficit, the UN plans to eliminate 2,681 positions across various agencies. Guterres said these jobs represent functions that could be handled more efficiently or by other entities. The UN is already operating with roughly 18 percent of posts vacant because of its liquidity crisis, though he stressed those vacancies are not necessarily linked to the positions now being cut. “Those vacancies do not correspond to a political decision… but simply the fact that people left and we have not the money to pay for the replacement,” he said.

Spending on special political missions will also decline, falling to $543.6 million in 2026, a 21.6 percent decrease from the previous year. The UN said it will close some missions entirely and scale back others as part of the cost-saving effort.

The organisation is also continuing a gradual reduction of its footprint in New York, home to its headquarters and among the world’s most expensive real estate markets. Guterres said two leases in the city will be terminated by late 2027, generating annual savings of $24.5 million starting in 2029. Since 2017, the UN has saved $126 million by closing other offices in New York.