financetom
Economy
financetom
/
Economy
/
More than 200 jobs cut at International Labour Organization as US slashes funding
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
More than 200 jobs cut at International Labour Organization as US slashes funding
May 28, 2025 7:08 AM

GENEVA (Reuters) - The Geneva-based International Labour Organization (ILO) has axed about 225 jobs due to cutbacks in U.S. funding at the United Nations agency, its head said on Wednesday.

The job losses, which affect posts at the ILO's Geneva headquarters and in the field, follow the U.S. administration's decision to reduce voluntary contributions under President Donald Trump, ILO Director-General Gilbert F. Houngbo said.

"One job loss is too many ... You would not imagine the mood that has generated within my staff," he told reporters in Geneva.

The ILO head also raised the possibility of relocating some of the agency's operations out of Geneva, one of the world's most expensive cities, to ease financial pressures, which is also part of broader talks on reform.

Potential locations could be European cities such as Turin, Budapest, or Bonn, or further afield in places including Doha and Pretoria, Houngbo said.

Short-term contractors and employees at some other U.N. agencies like the International Organization for Migration have already been informed of redundancies.

But thousands more job losses could be on the way as international agencies grapple with funding shortages due to the withdrawal of aid by the Trump administration and other donors.

"The U.S. is the top contributor for assessed and voluntary contribution, so our challenge is double," Houngbo said, highlighting also a broader pullback in financial support among member states.

The U.S. accounts for 22% of the ILO's $880 million two-year budget for 2026-2027, expected to be approved at the ILO's International Labour Conference next week.

"Worst case scenario, we may have to consider a revised budget. I don't recall the last time that happened to the ILO," Houngbo said.

He said he is developing a business continuity plan in case of further cuts to financial support, and that the ILO will be implementing a freeze on external recruitment, as well as launching a voluntary redundancy programme.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US manufacturing contracts further in October; supplier delivery times lengthen
US manufacturing contracts further in October; supplier delivery times lengthen
Nov 3, 2025
WASHINGTON (Reuters) -U.S. manufacturing contracted for an eighth straight month in October as new orders remained subdued, and suppliers were taking longer to deliver materials to factories against the backdrop of tariffs on imported goods. The Institute for Supply Management (ISM) said on Monday its manufacturing PMI fell to 48.7 last month from 49.1 in September. A reading below 50...
Fed's Goolsbee is on fence about need to cut rates in December
Fed's Goolsbee is on fence about need to cut rates in December
Nov 3, 2025
(Reuters) -Federal Reserve Bank of Chicago President Austan Goolsbee said on Monday he's in no hurry to cut interest rates again with inflation still too far above the central bank's 2% target.  I'm not decided going into the December meeting and my threshold for cutting is a little bit higher than it was at the last two meetings, Goolsbee said...
No surprises seen in US debt issuance: T-Bills up, bonds steady
No surprises seen in US debt issuance: T-Bills up, bonds steady
Nov 3, 2025
NEW YORK (Reuters) -The U.S. Treasury is widely expected this week to announce its intention to keep note and bond auction sizes unchanged over the next 12 months, at least, as it likely continues to issue more bills and shorter-term debt to manage a sizable fiscal deficit. The Treasury will release its quarterly borrowing estimates on Monday at 3:00 p.m....
Fed's Daly says she backed latest rate cut, open to another one in December
Fed's Daly says she backed latest rate cut, open to another one in December
Nov 3, 2025
(Reuters) -San Francisco Federal Reserve President Mary Daly on Monday said she supported the U.S. central bank's interest rate cut last week, and will want to sift through incoming data to assess if another reduction in borrowing costs is warranted at the December 9-10 meeting. I thought it was appropriate to take another bit off the policy rate, she said...
Copyright 2023-2026 - www.financetom.com All Rights Reserved