UN eyes structural overhaul amid budget crisis and donor cuts

The United Nations (UN) is considering a major structural overhaul that would consolidate dozens of agencies into four core departments; peace and security, humanitarian affairs, sustainable development, and human rights, according to a leaked internal memo.
Reported by The National on May 2nd, the proposed reforms come as the UN faces severe funding shortfalls, largely due to drastic US foreign aid cuts under former President Donald Trump.
Agencies such as UNICEF, WFP, and WHO may see operational aspects merged into a single humanitarian body, as part of what could be the UN’s most extensive restructuring in decades.
Marked “strictly confidential,” the six-page document cites “overlapping mandates,” “fragmentation,” and a “bloated” leadership structure as key inefficiencies.
It calls for long-term structural changes and cost-cutting measures, including relocating staff from high-cost cities such as New York and Geneva to more affordable locations, for example Kenya or Ethiopia.
UN Secretary-General António Guterres, who appointed the reform task force in March, has long advocated for greater efficiency.
The memo is seen as an initial roadmap for change, with one source calling it a “starting point.”
It also suggests merging the UN AIDS agency with WHO and proposes further consolidation of overlapping roles.
The financial crisis at present is one of the worst in the UN’s 80-year history.
The US, its largest donor, is $2.7 billion in arrears.
UNICEF expects a 20% budget drop; the UN’s migration agency may cut 30%, affecting 6,000 jobs.
The situation is already impacting operations, with humanitarian offices reducing staff and refugee rations.
Hundreds of UN employees protested in Geneva on May 1st against layoffs.
Despite the challenges, the UN leadership stresses the urgency of this structural overhaul.
A second memo urged departments to prepare relocation plans by May 16th and warned, “bold and immediate steps” are needed to maximise efficiency and control costs.
The National. Maghrebi
Want to chase the pulse of North Africa?
Enter your email address and name to receive our weekly newsletter.