ILO's Financial Woes: Possible Workforce Reductions Loom Amid Cash Flow Crisis

The International Labour Organization (ILO) is grappling with severe cash flow issues due to overdue contributions from member states, including significant arrears from the United States. This financial strain may lead to the abolition of up to 295 positions, as the organization explores drastic reform and cost-reduction measures.

The International Labour Organization (ILO) is currently facing a grave financial predicament, with potential job cuts looming due to unpaid contributions from member nations, particularly the United States.

According to an internal document, the U.N. agency responsible for promoting global labour rights might need to cut up to 295 positions, or about 8% of its workforce, to cope with this crisis. The ILO is owed over 260 million Swiss francs in outstanding contributions, a third of its biennial budget, critically affecting its cash flow.

In response, the organization is considering relocating staff and cutting costs significantly. The most severe scenario includes a 20% budget reduction in 2026-27, leading to substantial job losses. Attempts to stabilize the financial situation are ongoing, but involuntary terminations cannot be completely avoided if contributions continue to lag.

(With inputs from agencies.)