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Exclusive-UN eyes big overhaul amid funding crisis, internal memo shows
Published by Global Banking and Finance Review
Posted on May 1, 2025
5 min readLast updated: January 24, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on May 1, 2025
5 min readLast updated: January 24, 2026
The UN is planning a major overhaul to merge departments and address funding issues, aiming for greater efficiency and cost-effectiveness.
By Emma Farge and John Shiffman
GENEVA/UNITED NATIONS (Reuters) -The United Nations is considering a massive overhaul that would merge major departments and shift resources across the globe, according to an internal memo prepared by senior officials tasked with reforming the world body.
The high-level review comes as U.N. agencies scramble to cope with the fallout from U.S. foreign aid cuts under President Donald Trump that have gutted humanitarian agencies.
The six-page document, marked "strictly confidential" and reviewed by Reuters, contains a list of what it terms "suggestions" that would consolidate dozens of U.N. agencies into four primary departments: peace and security, humanitarian affairs, sustainable development, and human rights.
Under one option, for example, operational aspects of the World Food Programme, the U.N. children's agency, the World Health Organization and the U.N. refugee agency would be merged into a single humanitarian entity, it said.
The memo contains a range of suggestions, some large, some small, some speculative, which, if all adopted, would represent the most sweeping reforms in decades.
It suggests merging the U.N. AIDS agency into the WHO, and reducing the need for up to six translators at meetings. Another suggestion proposes consolidating the World Trade Organization - which is not a U.N. entity - with U.N. development agencies.
WTO spokesperson Ismaila Dieng said the body "was established by a separate international agreement and operates independently. It is not part of any ongoing discussions on U.N. reform".
Matthew Saltmarsh, spokesperson for UNHCR, said the agency had a "unique mandate" in protecting refugees.
One official familiar with the memo called it a starting point.
'SIGNIFICANT OVERLAPS'
But the language of the internal self-assessment appears to confirm what both supporters and critics of the global body have long said: that the U.N. needs streamlining. In a series of observations, the memo refers to "overlapping mandates", "inefficient use of resources", "fragmentation and duplication" and notes a bloating of senior positions.
It describes "systemic challenges" the U.N. faces, problems exacerbated as the General Assembly continues to add missions and programmes. "Increased mandates, often without clear exit strategies, and complexities have led to significant overlaps, inefficiencies and increased costs," the document said.
The memo was prepared by a task force appointed in March by Secretary General António Guterres, who said at the time the body needed to make itself more cost-effective.
The task force, considering long-term structural changes, is in addition to shorter-term cost-cutting efforts. Some diplomats have described the effort as a proactive step to help forestall deeper U.S. cuts.
"The memo is the result of an exercise to generate ideas and thoughts from senior officials on how to achieve the Secretary General's vision," said Guterres' spokesman, Stéphane Dujarric.
A Geneva-based ambassador voiced support for the reform ideas. "Anything short of bold and radical at this point will not work," he said, adding that it was time to take a "serious look" at U.N. staff relocations.
Richard Gowan, United Nations Director for the International Crisis Group, said the radical ideas to merge and slash the U.N. bureaucracy were generating excitement among diplomats.
"The message from major donors to the U.N. is that it is time for a very firm shake-up, so big changes may be possible," he said, while predicting some "procedural bickering" and resistance from affected U.N. entities.
Guterres has long called for U.N. reform. During a meeting with Trump in 2017, the Secretary General told the U.S. President that the world body was saddled with "fragmented structures, byzantine procedures, endless red tape".
But it is now facing one of the greatest financial crises in its 80-year history. At the start of the year, the United States, by far the U.N.'s largest donor, was already about $1.5 billion in arrears in mandatory payments for the regular budget and $1.2 billion in arrears for peacekeeping.
Since Trump took office in January, he has cut billions of dollars more in foreign assistance as part of his "America First" foreign policy.
CUTS AND GEOPOLITICAL SHIFTS
The task force memo does not mention any country by name, but notes starkly that "geopolitical shifts and substantial reductions in foreign aid budget are challenging the legitimacy and effectiveness of the Organization".
Among the impacts: the U.N. humanitarian office, which faces a $58 million shortfall, has cut 20% of its staff. UNICEF projects its budget will shrink by 20% and the U.N. migration agency expects a 30% budget drop, affecting 6,000 jobs.
The cuts are "having an immediate, devastating impact", Bob Rae, the Canadian ambassador and president of the U.N.'s Economic and Social Council, said on Monday.
The memo also suggests relocating some U.N. staff from more expensive cities to lower-cost locales, and merging operations in Rome.
Another shorter internal memo sent to senior U.N. officials last week and seen by Reuters told them to prepare by May 16 a list of jobs that could be performed outside New York or Geneva.
Hundreds of U.N. staff protested against job losses in Geneva on May 1.
Staff directly supporting the U.N. General Assembly and the Security Council in New York would remain, the first memo said.
(Reporting by Emma Farge and John Shiffman, Editing by Rosalba O'Brien and Alex Richardson)
The internal memo outlines suggestions for a significant overhaul of the U.N. to streamline operations and address funding challenges.
U.S. foreign aid cuts under President Trump have severely impacted humanitarian agencies, leading to financial shortfalls and staffing reductions.
Proposals include merging various U.N. agencies into fewer departments and relocating staff from expensive cities to lower-cost locations.
Guterres has long advocated for U.N. reform, emphasizing the need for cost-effectiveness and addressing fragmented structures within the organization.
The U.N. humanitarian office has cut 20% of its staff due to a $58 million shortfall, while UNICEF and the U.N. migration agency expect significant budget reductions.
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