The United Nations refugee agency UNHCR has slashed its budget by 16 per cent and reduced staffing levels by 3,500 because of declining international humanitarian funding, reports from Geneva.

The cuts come as global human displacement is forecast to climb to an all-time high next year, and they amount to almost half UNHCR’s workforce and a third of the agency’s 2025 budget.

The numbers are a stark reflection of the ongoing impact of cuts to foreign aid budgets by the Trump administration and other nations.

In 2025, UNHCR had 16,126 budgeted permanent posts versus 12,051 this year and 8,540 in 2027, ​the reports say.

The cuts were revealed to member states at a recent UN meeting in Geneva, the reports say.

A spokesperson for UNHCR said income projections for next year were comparable to 2026 because much of this year’s funding projections have not materialised.

“The organisation experienced a significant funding shortfall in 2025 and as a consequence was already ‌compelled to undertake substantial workforce reductions,” the spokesperson said.

“The budget constraints are real, but we are also moving forward with a comprehensive reform agenda to make UNHCR more agile, cost-effective, and accountable,” ⁠he said.

The UNHCR’s budget is widely regarded as aspirational because it is rarely fully funded.

UNHCR has been hit by donor cuts and has already been forced to reduce aid to refugees, cut thousands of jobs, close an office in Africa. It is also moving its Geneva headquarters to a cheaper building to save money.

The agency has always relied on voluntary funding from UBN member states since its creation in the aftermath of World War II when it was tasked with supporting refugees fleeing war, persecution and violence.

The cuts come after the Trump administration has raised the possibility of a potential split with the agency, although UNHCR High Commissioner Barham Salih has since voiced hope the partnership will continue.

At the same time, the US administration has urged other nations to join a campaign to roll back asylum protections.

The reports say UNHCR is planning to focus on supporting refugees in emergencies, ensuring their protection, action on voluntary returns and promoting self-reliance.

The 2027 UNHCR budget is the smallest in ten years.

The US was the leading UNHCR donor in 2025, giving over $US800 million or nearly ​a quarter of the total contributions of $US3.6 billion, the UNHCR website shows. The US contribution dropped to around $US110 million this ​year.

Budgets will decline across all regions, with the Americas the worst affected and ​due to fall by almost a third to $US485 million, the reports say.

The other regions hardest hit were the Asia Pacific, where some 1.2 million Rohingya refugees in Bangladesh ‌already face worsening conditions, down 22 per cent, and West and Central Africa, ​which hosts millions of refugees from Sudan’s civil ​war, down 21 per cent, the reports say.

The budget and staff cuts come in the face of a record high forecast of 131.2 million displaced people in 2027, up from 129.4 million this year as conflicts such as Ukraine and Sudan persist, according to UNHCR data projections.

The reports say some nations raised concerns at the meeting about the impact ​of the cuts on refugees and how major refugee host ‌countries, such as Bangladesh, Uganda and South Sudan, will manage.