Jakarta – The United Nations (UN) is preparing to implement a significant workforce reduction, with approximately 6,900 staff set to be laid off as part of cost-saving measures amid a growing budget shortfall.
In an internal notice, the UN Secretariat stated that the organization aims to reduce operational costs by 20 percent, amounting to a total cut of US$3.7 billion (approximately Rp60 trillion). Details of the layoffs are expected to be communicated to staff by 13 June.
The financial crisis coincides with increasing fiscal pressure from the United States, the UN’s largest single contributor. Washington’s ongoing budget tightening, along with unpaid dues totaling nearly US$1.5 billion, has created a ripple effect throughout UN humanitarian and peacekeeping operations.
Although the memo from UN Controller Chandramouli Ramanathan did not directly attribute the layoffs to U.S. arrears, it acknowledged that the job cuts form part of a broader financial review initiative called UN80, launched in March 2025.
“This is an ambitious undertaking to ensure the United Nations remains fit for purpose—to uphold 21st-century multilateralism, alleviate human suffering, and build a better future for all,” Ramanathan wrote, as cited by Reuters.
The funding gap has had a cascading effect on multiple UN agencies, many of which rely heavily on consistent donor contributions to sustain field operations, especially in conflict zones and underdeveloped regions. Several Southeast Asian countries also maintain active cooperation with UN development programs, many of which could be affected by the planned downsizing.
Observers note that this move may alter the dynamics of multilateral engagement in the Asia-Pacific, particularly as global institutions face mounting pressure to adapt structurally amid evolving geopolitical and financial realities.
As the situation unfolds, ASEAN member states are expected to closely monitor its implications, especially regarding regional programs tied to the UN’s humanitarian and development agendas.
