To cut costs, UN urges Geneva, NY offices to move staff to cheaper cities

The United Nations is asking its agencies in Geneva and New York to further look for cost reductions and efficiencies, including by moving staffers to cheaper locations. In a memo dated April 25 seen by Devex, the office of the U.N. secretary-general asked heads of U.N. Secretariats in the two cities — which rank among the most expensive worldwide — to “identify as many functions as possible” that could be relocated or “otherwise reduced or abolished if they are duplicative or no longer viable.” It adds that agencies should review positions financed by both assessed contributions — or member states’ dues — and voluntary contributions. While identifying positions for relocation to cut costs, agencies should do so “without compromising effectiveness”, the memo states. For example, functions that can be performed in locations without major time zone differences from colleagues in the field or regional offices and positions that do not require frequent in-person interaction with member states should be prioritized. “A global review of the availability of office space and costs is currently under way. At this stage, you are asked to identify which functions could be relocated, rather than determining specific duty stations for their relocation,” the memo added. The agencies are expected to submit their review by May 16. The review is part of Secretary-General António Guterres' UN80 initiative, which aims to reform the U.N. as it faces significant financial challenges. When he launched the initiative in March, Guterres said, “resources are shrinking across the board,” and for the past seven years, the U.N. “has faced a liquidity crisis because not all Member States pay in full, and many also do not pay on time.” Even before the memo was sent out, many U.N. agencies had already implemented cost-cutting measures, and now, in the midst of restructuring plans that are expected to reduce their workforce. The World Health Organization faces a significant budget deficit in 2025 and in the coming years. It’s preparing to reduce its staff in Geneva, including at the senior leadership level, and WHO Director-General Tedros Adhanom Ghebreyesus has spoken about relocating some headquarters functions to other countries. There are concerns in Geneva, however, that cuts are being rushed, piling the pressure on organizations, and will have unintended consequences on everything the U.N. does. “António Guterres is hoping to do all this in two weeks. Even [the Department of Government Efficiency] is working over a period of months. Member states have no input in the process, and didn’t even ask for it, while staff aren’t being consulted for now,” Ian Richards, president of the U.N. Geneva Staff Union, told Devex. He said the savings the U.N. expects from relocating positions are limited, with the cost differences for international staff between U.N. duty stations at roughly 15%. The push to relocate staff also comes after member states have spent billions of dollars to renovate the U.N. buildings in Geneva, and after the government of Switzerland had advanced interest-free loans for the renovation. “Staff are extremely worried precisely because of the rush. There can’t be any sensible review in that time. It could be used to relocate staff who aren’t politically close to the leadership or to retaliate,” Richards said. He’s also worried that when Guterres presents the cuts to member states, “they will ask for their own on top.”