UN considers major overhaul to cut costs amid funding crisis, memo shows

The UN is weighing sweeping reforms to consolidate its sprawling operations, cut inefficiencies and address a severe funding crisis, according to a confidential internal memo obtained by The National . The proposals, still in early discussions and not yet finalised, could mark one of the most significant restructurings in the UN’s 80-year history . The move comes as the organisation grapples with deep budget cuts from key donors, including the US under President Donald Trump, raising doubts about its ability to fulfil its global humanitarian and peacekeeping missions. The document, labelled “strictly confidential” and first reported by Reuters, is part of Secretary General Antonio Guterres ’s UN80 reform initiative, launched in March ahead of the UN’s 80th anniversary this year. It warns of “significant overlaps, inefficiencies, and increased costs” across the UN system, as well as a “fragmented development system” that hampers efforts to assist poorer and conflict-affected nations. “Geopolitical shifts and substantial reductions in foreign aid budgets are challenging the legitimacy and effectiveness of the Organisation,” the memo states, in an apparent reference to funding cuts by the US and other western nations. UN spokesman Stephane Dujarric told reporters in response to the leaked document: “This is not Antonio Guterres’ organisation. He’s the chief administrative officer. It’s the member states’ organisation. “As part of this reform effort, we’ve asked senior officials to submit suggestions on how to improve the UN.” The initiative comes as the UN faces mounting financial pressures and calls for greater accountability. The leaked memo underscores the urgency of addressing bureaucratic inefficiencies to ensure the organisation remains effective in an increasingly polarised world. The UN80 reform initiative, launched March 12, seeks to cut costs, improve efficiency and modernise the organisation. The plan includes three key areas: optimising resource use, reviewing outdated or overlapping mandates from member states, and exploring structural changes. “He’s working to make the UN more adapted to today’s world,” Mr Dujarric said of Mr Guterres. Among the options under discussion is combining UN bodies overseeing peacekeeping , drugs and crime, development assistance, and the Office of the Special Adviser on Africa into one unified entity. Another proposal suggests decentralising peace and security operations by moving them “closer to the field” with more regional management, alongside a “comprehensive restructuring” of political and peacekeeping departments. The reforms could also reshape humanitarian efforts, with plans to consolidate the UN’s aid coordinator, refugee agency (UNHCR), and migration agency (IOM) into a single streamlined organisation, while leveraging the World Food Programme ’s (WFP) expertise. Staff directly supporting the UN General Assembly and the Security Council in New York would remain, the latest memo said. Beyond restructuring, the proposals aim to modernise the UN’s approach to emerging technologies like artificial intelligence and overhaul internal processes – from meeting structures to funding mechanisms, budget-setting, and the creation of future agencies. The potential changes come as the UN faces growing pressure to adapt to 21st-century challenges, though any major reforms would require approval from member states. Discussions are ongoing, with no final decisions yet made.

UN considers major overhaul to cut costs amid funding crisis, memo shows

Suggestions include consolidating dozens of agencies into four departments