Cash-strapped United Nations agency sacks 5,000 workers

The United Nations High Commissioner for Refugees (UNHCR) has shed nearly 5,000 jobs in 2025, following swingeing cuts in international aid.

The UNHCR chief, Filippo Grandi, disclosed this on Monday, October 6, 2025, decrying the “disastrous” political choices behind the crisis.

The UNHCR is grappling with surging global displacement, while under President Donald Trump the United States – traditionally the world’s top donor – has heavily slashed foreign aid, causing havoc across the globe.

Grandi said the cuts constituted more than a quarter of the agency’s workforce, with more to come – and no country or sector left unscathed.

Grandi said: “Critical programmes and lifesaving activities have to be stopped, gender-based violence prevention work, psychosocial support to survivors of torture, stopped.

“Schools were closed, food assistance decreased, cash grants cut, resettlement ground to a halt. This is what happens when you slash funding by over $1 billion in a matter of weeks.”

The UN refugee chief said the humanitarian system was facing “political choices with disastrous financial implications”.

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Grandi said Washington previously accounted for more than 40 percent of the UNHCR’s budget, and its pull-back, along with belt-tightening by other major donor countries, has left the agency facing “bleak” numbers.

UNHCR had an approved budget for 2025 of $10.6 billion, Grandi said, stressing though that the agency in recent years had only received “approximately half of our budget requirements” – or around $5 billion.

“As things stand, we projected we will end 2025 with $3.9 billion in funds available – a decrease of $1.3 billion compared to 2024,” he said.

An agency spokesman told AFP that both full-time staff and people on temporary or consultancy contracts had lost their jobs.

The United States has been paying a “disproportionate” share of UNHCR’s costs, Washington’s UN representative told the annual meeting of the agency’s executive committee on Monday.

Calling for reform, Tressa Rae Finerty also blamed economic migration for the strain on asylum systems around the world.

“Abuse of the asylum system by economic migrants seeking to undermine immigration law has reached epidemic proportions and now threatens support for the asylum principle itself,” she warned.

The Star