The United Nations High Commissioner for Refugees (UNHCR) is preparing deeper job cuts and internal reforms as a sharp decline in global funding forces the agency into what its leadership describes as an unsustainable position.
In a letter to member states dated May 15, High Commissioner Barham Salih said the organisation expects to have just over $3 billion available in 2026, roughly 15% less than the previous year. The warning comes after a significant contraction in funding in 2025, when contributions fell by about 30% compared to 2024.
UNHCR, which depends largely on voluntary donations, has been hit by reduced contributions from key donors, including the United States, as governments redirect spending toward defence and domestic priorities. At the same time, global displacement continues to rise, stretching the agency’s capacity to respond.
The agency currently supports millions of displaced people across major crisis zones, including Ukraine and Sudan, where ongoing conflict has driven large-scale humanitarian needs.
Salih warned that the mismatch between staffing and available roles has become a major financial burden. UNHCR currently employs around 3,000 international staff but has only 1,800 available positions, leaving hundreds of employees without assignments while still on payroll.
“Regrettably, we will then need to terminate the contracts of staff who have not been able to secure positions,” Salih said, adding that the process is expected to be completed by the end of September.
The financial strain is significant. The agency estimates the cost of maintaining the current staffing imbalance at approximately $185 million between 2026 and 2028, further compounding its budget pressures.
UNHCR said the imbalance emerged after it reduced international staff positions by 33% last year, creating a lag between structural changes and workforce adjustments. The agency acknowledged the human impact of the cuts, noting the anxiety among employees, but said it had little room to manoeuvre.
Beyond staffing, the agency is also grappling with changes in how aid is funded. A growing share of donor contributions is now tightly earmarked for specific projects, limiting flexibility in how funds can be used. According to Salih, earmarked funding rose from 24% of total income in 2024 to 44% in 2025, and could exceed 50% in 2026.
This shift, he said, is making it harder for UNHCR to respond quickly to emerging crises or allocate resources where they are most urgently needed.
“We remain deeply concerned by the widening gap between needs and resources,” the agency said, warning that the funding crunch will have severe consequences for millions of people displaced by war and persecution.
Salih has called on donor countries to provide more flexible funding to help the organisation adapt to rapidly changing humanitarian demands. Without that shift, UNHCR risks scaling back critical services at a time when global displacement is reaching record levels.
