GENEVA: The UN refugee agency has scaled back its budget by 16 per cent and lowered its official headcount by around 3,500 as it adapts to new financial constraints at a time when global displacement is forecast to climb to an all-time high next year, according to diplomats and documents.

The total cuts, on paper, would amount to a near halving of the workforce and a drop in the budget of a third since 2025, laying bare the cumulative impact of cuts due to reductions in foreign aid budgets by the Trump administration and others.

Last year, the United Nations High Commissioner for Refugees (UNHCR) had 16,126 budgeted posts versus 12,051 this year and 8,540 for next year, the budget documents showed, excluding temporary roles and contractors.

The agency’s officials presented the latest cuts to member states at a UN meeting in Geneva on Thursday, according to three diplomats who attended.

However, a UNHCR spokesperson said that, in reality, such large cuts would not be implemented since many posts were never filled in previous budgets, which reflected needs and funding goals, rather than realised donations.

‘Budget constraints are real’

The spokesperson said income projections for next year were comparable to the current year’s.

“The organisation experienced a significant funding shortfall in 2025 and as a consequence was already compelled to undertake substantial workforce reductions,” he said.

It would, however, be reforming “unjustified” policies affecting up to 1,000 staff, which had previously allowed them to remain employed during extended periods between assignments, he said.

“The budget constraints are real, but we are also moving forward with a comprehensive reform agenda to make UNHCR more agile, cost-effective, and accountable,” he said.

The agency has been particularly hard hit by donor cuts and has already been forced to reduce aid to refugees, cut thousands of jobs, close a southern Africa office and is moving from its Geneva headquarters to a cheaper building in the city to save money.

Created in the aftermath of World War II to help refugees fleeing war, persecution and violence, the agency relies almost entirely on voluntary funding, much of it pre-designated by donors for politically favoured projects in what many now see as a structural flaw.

The scale-back comes on the heels of the Trump administration weighing a potential split with the agency, although High Commissioner Barham Salih has since voiced hope the partnership will continue.

Officials in Washington have also urged other nations to join a campaign to roll back asylum protections.

Biggest cuts to Americas

The planned budget for 2027 is $7.14 billion, the documents showed, down 16pc from last year and the smallest budget in 10 years. The budget for last year was $10.6bn.

However, the UNHCR’s budget is seen as aspirational since it is rarely, if ever, fully funded.

The US, which sent a delegate to the Geneva meeting, was the top donor to UNHCR last year, giving over $800 million, or nearly a quarter, of the total contributions of $3.6bn. That dropped to $110m this year.

Published in Dawn, August 29th, 2026