The International Labour Organisation (ILO) has confirmed the loss of approximately 225 jobs, a direct result of dwindling financial support from the United States under the administration of former President Donald Trump. ILO Director-General Gilbert F. Houngbo announced the development on Wednesday during a press briefing at the organisation’s Geneva headquarters.

The job cuts affect both the ILO’s Geneva-based personnel and its field staff across various global offices. The Geneva-based UN agency, which champions labour rights and international work standards, is grappling with the consequences of reduced voluntary U.S. contributions—a critical component of its funding structure.

“One job loss is too many,” Houngbo lamented. “You would not imagine the mood that has generated within my staff.”

As financial pressures mount, Houngbo revealed that the ILO is considering a strategic relocation of parts of its operations out of Geneva, citing the high cost of maintaining headquarters in one of the world’s most expensive cities. Proposed relocation options include European cities such as Turin, Budapest, and Bonn, as well as more distant hubs like Doha and Pretoria.

The ILO is not alone in its financial crisis. Other United Nations agencies, including the International Organisation for Migration, have also begun issuing redundancy notices to short-term contractors and staff. 

He warned that thousands more job losses could follow as agencies struggle to adjust to significant funding gaps.

The US has long been the ILO’s largest single donor, contributing 22% of the agency’s projected $880 million budget for the 2026–2027 biennium. That budget is expected to come under formal review during the upcoming International Labour Conference.

“The US is the top contributor for both assessed and voluntary contributions, so our challenge is double,” Houngbo explained, adding that the agency is also experiencing a broader pullback from other member states.

In anticipation of deeper financial challenges, Houngbo disclosed that the ILO is preparing a business continuity plan. This includes a freeze on external recruitment, the rollout of a voluntary redundancy programme, and the possible need to revise the agency’s budget for the first time in recent memory.

“The worst-case scenario may require a budget revision,” he noted. “I don’t recall the last time that happened to the ILO.”

As the agency navigates these turbulent times, Houngbo emphasised that reform discussions are ongoing, with cost-efficiency and sustainability at the heart of the organisation’s strategy moving forward.

Follow us on: