U.S. Funding Withholding Leads to Job Cuts at UN Labor Agency
The International Labour Organization (ILO) has approved significant job cuts, totaling 120 full-time equivalent positions, including the abolition of up to 73 permanent posts by January 1, 2027. This decision comes as the agency faces a deepening liquidity crisis, primarily due to the United States withholding its dues. The U.S. reportedly owes approximately $300 million (CHF257 million) in unpaid bills, which accounts for 70% of the total amount owed by member states. These workforce reductions are expected to save the ILO around $22 million and are part of broader cost-cutting measures. The ILO's Director-General, Gilbert Houngbo, proposed these cuts, which were approved by the governing body at a special session. This action follows previous job reductions, with over 200 positions slashed since 2025.
