UN refugee agency scales back posts and budget for 2027, documents show

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 in 2027, according to diplomats and documents seen by Reuters.

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

In 2025, UNHCR had 16,126 budgeted posts versus 12,051 in 2026 and 8,540 in 2027, the budget documents showed, excluding temporary roles and contractors.

UNHCR officials presented the latest cuts to member states at a UN meeting in Geneva on Aug 27, according to three diplomats who attended.

However, a UN refugee agency spokesman 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 spokesman said income projections for 2027 were comparable with 2026.

“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.

Agency plans to focus on emergencies

The agency has been particularly hard hit by donor cuts and has already been forced to reduce aid to refugees, cut thousands of jobs and close a Southern Africa office. It is also 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 from the agency, although UN High Commissioner for Refugees Barham Salih has since voiced hope the partnership will continue. Trump officials have also urged other nations to join a campaign to roll back asylum protections.

The UNHCR said in the budget documents that it planned to prioritise helping refugees in emergencies, ensuring their protection, taking action on voluntary returns and promoting self-reliance.

Biggest cuts to the Americas

The planned budget for 2027 is US$7.14 billion (S$9.1 billion), the documents showed, down 16 per cent from 2025 and the smallest budget in at least 10 years. The budget in 2025 was US$10.6 billion.

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 in 2025, giving more than US$800 million, or nearly a quarter of the total contributions of US$3.6 billion, the UNHCR website showed. That dropped to around US$110 million in 2026.

Budgets will decline across all regions, with the Americas the worst affected and due to fall by almost a third to US$485 million.

The other regions hardest hit were Asia-Pacific, where around 1.2 million Rohingya refugees in Bangladesh already face worsening conditions, down 22 per cent, and West and Central Africa, which hosts millions of refugees from Sudan’s civil war, down 21 per cent, the documents showed.

Host countries worried

The cuts come despite a forecast for a record high of 131.2 million displaced people in 2027, up from 129.4 million in 2026 as conflicts such as those in Ukraine and Sudan persist, according to UNHCR projections, cited by diplomats.

Some states raised concerns at the meeting about both the impact of the cuts on refugees and how major refugee host countries, such as Uganda and Bangladesh, would pay for them, diplomats said.

“Everyone is fed up. But unravelling what is left of the system is even worse,” one diplomat said.

But other diplomats said they welcomed the efforts to streamline the UNHCR’s work in a difficult environment.

The planned budget is preliminary and is pending approval by the UNHCR executive committee in October. REUTERS