ILO chief seeks to cut 120 jobs to save $22 million amid US payment shortfall

Director-General Gilbert F. Houngbo told the ILO’s governing body that a $22 million saving is essential to address a severe cash-flow crisis, proposing the termination of about 120 employees, including 73 permanent civil-service posts out of a total staff of 1,670. The shortfall stems largely from the United States, which is behind on roughly 257 million Swiss francs—about 70 % of all member-state arrears. Houngbo’s plan, slated for discussion at an extraordinary meeting on September 7 in Geneva, also calls for a hiring freeze lasting until the end of 2027.

While the director-general argues the governing body can act under the 2026-2027 contingency framework, the ILO Staff Union insists that only the International Labour Conference can legally authorize the reduction of permanent posts. The outcome will determine whether the agency can continue operating with a tighter budget while the United States remains delinquent on its contributions.