GENEVA

The UN refugee agency, UNHCR, announced on Monday that it has completed a comprehensive internal review and will significantly scale down operations due to a steep drop in humanitarian funding compared to 2024.

"In light of difficult financial realities, UNHCR is compelled to reduce the overall scale of its operations. We will focus our efforts on activities that have the greatest impact for refugees, supported by streamlined headquarters and regional bureau structures," Filippo Grandi, the UN high commissioner for refugees, said in a statement.

As part of its cost-cutting measures, the agency has closed or downsized offices globally and implemented a nearly 50% reduction in senior positions at its Geneva headquarters and regional bureaus.

In total, around 3,500 staff positions will be discontinued, and hundreds of temporary staff have already departed, according to the statement. UNHCR estimated these steps will reduce global staffing costs by approximately 30%.

While the agency prioritized operations in regions with the most urgent refugee needs, key programs in financial assistance, health, education, and water and sanitation have been affected.

UNHCR said it is working with partners and host countries to mitigate the impact and is exploring new models, such as co-locating staff with other UN agencies and using technology for efficiency.

"We are very grateful to the donors who have stepped up or made early contributions this year," Grandi said, adding: "Aid brings a degree of stability in deeply volatile situations. Investing in aid not only saves lives; it also avoids higher costs down the line."

UNHCR expects its funding this year to match levels from a decade ago, despite the number of forcibly displaced people nearly doubling to over 122 million.

"Even as we face painful cuts and lose so many dedicated colleagues, our commitment to refugees remains unshakeable," Grandi said.