The United Nations refugee agency UNHCR is set to slash more jobs and make urgent cuts to spending as it faces a fall in funding and foreign aid, the organisation’s ‌head has said.

UNHCR High Commissioner Barham Salih told member states in a recent letter that the agency ‌had “no choice” as it expects available funds in 2026 to reach just over $US3 billion, about 15 per cent lower than in 2025.

Last year, the agency announced thousands ​of job cuts.

The latest shortfall comes as the number of people displaced by war and persecution around the world continues to climb.

UNHCR works with people forced from their homes in conflicts around the world, including in Ukraine, Sudan and other conflict-hit countries.

“It is becoming increasingly clear that our projected financial situation for this year requires us to take some urgent steps,” Mr Salih said in the ‌letter.

He said the cuts will have a “severe impact on millions of displaced”.

UNHCR, which relies mostly on voluntary donations, suffered a roughly 30 per cent drop in available funding in 2025 compared with 2024, largely because of the US’ axing of its international aid programs and other donors shifting funds to defence.

Reports say there were now many more international staff on contract than postings available, meaning there were hundreds of people who were in between positions who were still being paid.

There are roughly 3,000  international staff for only ​1,800  positions, UNHCR ​said.

“Regrettably, we will then need to terminate the contracts of ​staff who have not been able to secure ‌positions, by the end of September,” Mr Salih said.

“This situation is not sustainable financially or operationally … and carries significant financial cost for the organisation, estimated at approximately $185 million over the 2026-2028 period,” Mr Salih said.

The agency said in a statement the imbalance in staffing had come after it reduced international staff positions by 33 per cent last year.

” We remain deeply concerned by the widening gap between needs and resources and the severe impact this will have on millions of people displaced by war and persecution,” the statement said.

Mr Salih called on donor countries to provide more flexible funding, saying in the ​letter the crisis ⁠has been compounded by a growing share of tightly earmarked donations.

Such funding rose from 24 per cent of income in 2024 to 44 per cent in 2025 and is expected to exceed 50 per cent in 2026, he said.

The World Health Organisation has also said its workforce will be cut ⁠by nearly ​a quarter – or more than 2,000 jobs – by the middle of ​this year after its top donor, the United States withdrew funding.