UN Refugee Agency Faces Job Cuts Amid Funding Shortfall

UNHCR Faces Job Cuts Amid Funding Shortfall

The UN refugee agency’s High Commissioner, Barham Salih, has announced that the organization will need to make urgent job cuts due to a significant funding shortfall. The agency expects available funds for 2026 to reach just over $3 billion, which is about 15% lower than in 2025.

This situation comes as the number of people displaced by war and persecution continues to rise globally. Salih stated that the projected financial situation requires urgent steps, including job cuts, to be taken. The agency relies mostly on voluntary donations and suffered a roughly 30% drop in available funding in 2025 compared with 2024.

The UNHCR will need to terminate contracts of staff who have not been able to secure positions by the end of September. This situation is unsustainable financially and operationally, carrying significant financial costs estimated at approximately $185 million over the 2026-2028 period.

Meanwhile, the World Health Organization (WHO) has also announced a workforce reduction, with nearly a quarter – or more than 2,000 jobs – to be cut by mid-year. WHO chief Tedros Adhanom Ghebreyesus said the financial situation had stabilized, with 90% of its budget for the next two years funded.

The UNHCR High Commissioner called on donor countries to provide more flexible funding as the crisis worsens, compounded by a growing share of tightly earmarked donations. The percentage of income from such donations rose from 24% in 2024 to 44% in 2025 and is expected to exceed 50% in 2026.