UN humanitarian arm faces major layoffs amid US$60 million budget shortfall

By Lydia Gichuki

UN humanitarian arm faces major layoffs amid US$60 million budget shortfall

The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) is set to lay off about 500 staff members – approximately 20% of its global workforce – due to a significant budget shortfall of nearly $60 million.

UN humanitarian chief Tom Fletcher announced the staff cuts in a letter to employees, signalling a major change for the agency that is responsible for coordinating global emergency relief. The reduction will shrink OCHA’s personnel from 2,600 to 2,100 across 60 countries.

The agency plans to scale back its ‘presence and operations’ in at least nine countries, including Zimbabwe, Pakistan, Libya, Colombia, Gaziantep in Turkey, Nigeria, Iraq, Eritrea, and Cameroon. In addition, OCHA is set to close its office in The Hague, as revealed in an internal email to staff obtained by The New Humanitarian.

One of the major financial blows to OCHA has been the sharp decline in funding from the United States. Fletcher noted that Washington’s annual contribution of approximately $63 million would have accounted for about 20% of the agency’s extrabudgetary funding in 2025.

However, the funding crisis is not rooted solely in the withdrawal of support from the United States. A broader shift in global donor priorities has also contributed to the shortfall. By December 2024, OCHA had received only 43% of its $46 billion appeal for the year, making it one of the most underfunded year in the agency’s history.

A humanitarian reset

While the cuts represent a significant reduction, they are also part of a broader institutional overhaul. Fletcher described the restructuring plan as a “humanitarian reset”, a strategic revamp of how the UN responds to emergencies in an era of shrinking resources and expanding humanitarian needs.

The reset also aligns with a wider reform agenda led by UN Secretary-General António Guterres who last month launched a cost-cutting initiative to improve efficiency as the UN approaches its 80th anniversary amid a global financial squeeze.

According to Fletcher, the restructuring follows internal consultations that began in February 2025.

“You have responded with hundreds of ideas … to decentralize decision-making, streamline processes, maximize resources, and invest in digital innovation,” he wrote.

To adapt, OCHA will streamline its operations, reduce senior positions across headquarter, regional, and country levels, and shift resources closer to frontline operations.

Ongoing recruitment freezes and travel restrictions, which have already saved $3.7 million, will remain in place.

At its headquarters in Geneva, the agency will reorganize around three core priorities: crisis response, sector renewal, and humanitarian leadership. These efforts will be backed by a consolidated division that will oversee financing, communications, and partnerships, which will all report directly to Fletcher.

He also underscored the need to build a more inclusive global leadership team while reaffirming OCHA’s pivotal role in humanitarian coordination.

“We will work in fewer countries but lead strongly where we remain,” he confirmed.

Mounting global needs, shrinking support

The downsizing comes amid unprecedented levels of global humanitarian need. The UN estimates that 305 million people across 72 countries will require humanitarian assistance in 2025. However, due to funding limitations, OCHA’s work aimed to reach just 190 million.

The agency’s funding squeeze mirrors wider challenges that the UN system is facing. The World Food Programme has shut its regional office in South Africa, while the UN Human Rights Office (OHCHR) has closed or reduced operations in seven countries across Africa, Asia, and Latin America. Meanwhile, some Geneva-based UN offices are facing partial shutdowns due to ongoing cash flow problems.