The International Labour Organization (ILO) is currently owed over 260 million Swiss francs ($323.34 million) by member states, particularly the United States (US), which could lead to 295 job cuts unless unless outstanding dues are settled.
Gilbert Houngbo, director-general, ILO, indicated this amount which is nearly one-third of its biennial budget, in an internal draft document, where he proposed cost-cutting measures aimed at reforming and maintaining its operations.
The potential job losses could be particularly significant as UN agency plays a pivotal role in shaping labour standards of member countries globally, including Nigeria, through policy support and technical assistance. Its flagship initiatives such as the Decent Work Country Programme (DWCP) and the National Employment Programme (NEP) in Nigeria are central to strenghtening labour laws, employment policies, and working conditions efforts, to promote fair employment practices and inclusive economic growth.
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The United States, the ILO’s largest donor, contributes 22 percent of its regular funding but reportedly owes more than 173 million francs. Other countries, including China and Germany, are also behind on payments. The ILO stated that it is doing everything possible to avoid compulsory redundancies, although such measures may become unavoidable if the financial situation does not improve.
The document outlines two scenarios. In the worst case, a 20 percent budget reduction for 2026–27 could result in the loss of 295 jobs across various locations and grades, saving an estimated $93.2 million. Already this year, 225 roles have been cut due to earlier funding constraints under President Donald Trump’s administration.
In a less severe scenario, the ILO proposes relocating 72 administrative, communications, and research roles from its Geneva headquarters. Moving 50 staff to its training centre in Turin could yield savings of $6 million over two years. Additional relocations may involve transferring responsibilities for Europe and Central Asia to Budapest, and for Arab States from Beirut to Doha. Renting out two floors of its Geneva premises could generate a further $5.4 million.
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The ILO staff union has expressed ‘profound concern’ over the financial crisis and criticised management for failing to engage in ‘good faith social dialogue’. These proposals are separate from broader UN plans to reduce its regular budget by 15 percent, as announced by António Guterres, secretart-general.
The ILO currently employs around 3,500 staff and plays a pivotal role in setting global labour standards, supporting governments, employers, and workers worldwide. Its governing body is expected to review the reform proposals in November.
