UN labour agency to cut 73 jobs as US withholds funding

The International Labour Organization (ILO) confirmed Monday it will slash 120 full-time equivalent jobs in a bid to stave off a severe liquidity crisis as its biggest donor, the United States, continues to withhold its dues.

The ILO’s 2026-27 regular budget covers about 1,670 full‑time positions, out of which 1,026 are permanent, established posts. Under the plan, up to 73 such posts would be abolished as of 1 January 2027, with the rest coming from other temporary roles. It’s unclear how many of those will concern Geneva-based staff.

The proposal, tabled by director general Gilbert Houngbo over the summer, was approved by the ILO’s governing body at a special session. It aims to ease its cash flow for the current year by saving around $22 million. The US owes some $300m (CHF257m) in unpaid bills, accounting for 70 per cent of the amount owed by member states. China is among the other major donors that have yet to pay in full.

Under the decision taken yesterday, Houngo is due to update the decision-making body on the financial situation and progress on cost-cutting messures at its regular session in November.

Compounding crisis

The workforce reduction, which has sparked outcry from the ILO’s staff union and workers’ unions, adds to more than 200 jobs slashed since 2025.
The ILO’s financial woes come as Houngbo, who has drawn criticism over his handling of the crisis, faces rare competition for his re-election in November from two contenders backed by Spain and Peru – the first time an incumbent has seen their second term challenged in decades.