As the United Nations approaches its 80th anniversary in 2025, it faces a serious existential crisis.
A leaked internal UN memo, prepared by a reform task force and obtained by Reuters, reveals urgent plans to radically restructure the organization with the aim of streamlining operations, reducing costs, and improving effectiveness.
A major funding shortfall, driven by geopolitical shifts, countries’ unmet financial obligations, and U.S. aid cuts under President Donald Trump, have triggered what may be the UN’s most sweeping overhaul since its establishment in 1945.
Proposed reforms
The proposal recommends that numerous agencies are consolidated into four central pillars – Peace and Security, Humanitarian Affairs, Sustainable Development, and Human Rights.
Among the most significant changes is the proposed unification of the operational functions of major aid agencies, including the World Food Programme (WFP), the United Nations Children’s Fund (UNICEF), and the World Health Organization (WHO), into a single humanitarian pillar. This restructuring aims to eliminate duplication, improve operational effectiveness, and maximize the use of limited resources.
Another reform under consideration involves merging peacekeeping operations, counter-narcotics efforts, development assistance, and the Office of the Special Adviser on Africa into a unified peace and security entity.
Additional measures include integrating UNAIDS into the WHO, reducing overlapping administrative roles, cutting translation services, and relocating staff from high-cost locations such as New York and Geneva to more affordable hubs such as Nairobi.
These proposals align with Secretary-General António Guterres’ UN@80 initiative, a blueprint for modernizing the UN in response to evolving political and financial realities. Guterres has warned that without deep structural reform, the organization risks becoming irrelevant.
His vision emphasizes breaking down silos, improving field coordination, and prioritizing outcomes over bureaucracy. Launched in March 2025, the UN@80 strategy focuses on four key reforms:
- Operational streamlining
- Digital transformation
- Diversified funding through private partnerships and innovative financing
- Enhanced transparency to rebuild donor trust
System under strain: UN’s mounting financial crisis
The United Nations is grappling with a worsening financial crisis that is being fueled by shifting geopolitical priorities and delayed or incomplete payments from member states.
For seven consecutive years, the UN has faced liquidity shortfalls due to countries failing to meet their assessed contributions on time or in full.
As of April 29, 2025, just 101 of the 193 member states had met their regular budget commitment. This chronic underfunding is straining the organization’s ability to sustain core operations and field missions.
The United States, traditionally the UN’s largest contributor, responsible for 22% of the regular budget and 27% of peacekeeping costs, has significantly reduced funding during the Trump administration, which has triggered a ripple effect across agencies.
As a result, the WFP is preparing to cut up to 30% of its global workforce by 2026, while the UNHCR is implementing similar staff reductions.
At the same time, traditional donors are retreating from development aid in favor of domestic expenditure. Germany plans to cut US$21.5 billion of its 2025 Official Development Assistance. France has proposed a €1 billion reduction, and Australia plans to slash US$813 million from foreign aid while increasing its defense budget by US$21 billion. These cuts threaten to reduce the voluntary contributions that many UN agencies rely on.
Global reactions to UN reform proposals
The proposed reforms have sparked mixed responses globally. UK Ambassador Barbara Woodward has endorsed the initiative, stating that the UN must become “more representative and responsive,” which would align with the UK’s broader push for the revitalization of the Security Council.
However, critics have expressed concerns about potential downsides. Geneva’s status as a global diplomatic hub may diminish as departments and staff are relocated or scaled back due to budget constraints.
The UNHCR has also voiced reservations, warning that integrating its operations into a larger humanitarian structure could jeopardize its “unique role” in refugee protection, as reported by Reuters.
Plans to move UN staff from high-cost cities to lower-cost hubs like Nairobi have met with resistance from staff. The UN Geneva Staff Union has protested about the relocation of Professional and General Service staff from Geneva, citing concerns over job losses and operational disruption.
Meanwhile, the World Trade Organization (WTO) has publicly distanced itself from the reform process, clarifying that it operates independently and rejecting any suggestion of merging with UN development agencies.