UN Offers Early Retirement Amid Cash Crunch, Job Cuts

The United Nations, facing a liquidity crisis, has been threatening to lay off about 20 percent of its estimated 37,000 employees worldwide — a proposed move that has triggered widespread protests from staff unions in both New York and Geneva.

In a new development last week, the Office of Human Resources (OHR) in the Department of Management Strategy, Policy and Compliance (DMSPC) introduced “an early separation programme in the interest of the good administration of the Organization,” aimed at mitigating the potential negative impact of future terminations.

The programme will allow voluntary separation of staff members, including early retirement, and is open until 12 September 2025. The UN General Assembly in 2017 set the retirement age at 65 years, effective 1 January 2018, up from 62.

Ian Richards, President of the Staff Union at the UN Office in Geneva (UNOG), said: “It’s by mutual agreement, so let’s see how many take it up.” He noted that the move would free up positions before Under-Secretary-General Guy Ryder — leading the UN80 reform process — implements across-the-board cuts. However, he questioned the strategy behind UN80, warning that indiscriminate cuts could harm both beneficiaries and the organisation.

He criticised the preservation of senior positions while junior posts are eliminated, and the fragmentation of headquarters across multiple European duty stations.

A recent survey revealed that only 18 percent of staff have confidence in Secretary-General Antonio Guterres’ leadership, and staff confidence in Ryder’s management of UN80 is similarly low.

Last month, Guterres asked UN departments in New York and Geneva to review whether some teams could be relocated to lower-cost duty stations, reduced, or abolished.

Guy Candusso, a former First Vice-President of the UN Staff Union in New York, recalled that buyout packages had been offered in the past, sometimes with enhanced benefits such as healthcare coverage until retirement age. He noted that a large downsizing under former USG Joseph Connor resulted in no forced job losses, as many staff voluntarily left or transferred.

However, Stephanie Hodge, an international evaluator and former UN adviser, dismissed early retirement as “disguised abolishment,” arguing that downsizing has a human cost. She described her own experience of being forced out without choice, benefits, or job security, saying such practices undermine the UN’s employment model and independence.

Naïma Abdellaoui, a member of the Executive Bureau of the UNOG Staff Union, warned that some staff feel pressured to apply early, fearing they may lose access to the separation package if they delay. She also questioned whether the programme is discriminatory against older employees.

The early separation programme is available to staff aged 55 and above, with at least five years of continuous service, who have not yet reached the mandatory retirement age of 65. Final approval will depend on budget availability and organisational needs. Those separated will be barred from re-employment within the UN system for a period corresponding to the months of termination indemnity received.