The UN refugee agency will need to cut more jobs and make urgent reforms as it faces a fall in funding and foreign aid, the organisation’s head said in a letter seen by Reuters.
UNHCR High Commissioner Barham Salih told member states the agency had ‘no choice’ as it expects available funds in 2026 to reach just over $3 billion, about 15 per cent lower than in 2025.
The agency already announced thousands of job cuts last year.
The shortfall comes as the number of people displaced by war and persecution around the world continues to climb.
The agency works with people forced from their homes in Ukraine, Sudan and other conflict-hit countries.
“It is becoming increasingly clear that our projected financial situation for this year requires us to take some urgent steps,” Salih said in the letter dated May 15.
UNHCR, which relies mostly on voluntary donations, suffered a roughly 30pc drop in available funding in 2025 compared with 2024, the letter said, as the United States and other donors cut contributions, and some shifted funds to defence.
There were now many more international staff on contract than postings available, meaning there were hundreds of people who were in between positions who were still being paid.
There are roughly 3,000 international staff for only 1,800 positions, UNHCR said.
“Regrettably, we will then need to terminate the contracts of staff who have not been able to secure positions,” by the end of September, Salih said.
The agency said in a statement the imbalance in staffing had come after it reduced international staff positions by 33pc last year.
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