GENEVA: The UN refugee agency has scaled back its budget by 16 per cent and lowered its official headcount by around 3,500 as it adapts to new financial constraints at a time when global displacement is forecast to climb to an all-time high next year, according to diplomats and documents.

The total cuts, on paper, would amount to a near halving of the workforce and a drop in the budget of a third since 2025, laying bare the cumulative impact of cuts due to reductions in foreign aid budgets by the Trump administration and others.

Last year, the United Nations High Commissioner for Refugees (UNHCR) had 16,126 budgeted posts versus 12,051 this year and 8,540 for next year, the budget documents showed, excluding temporary roles and contractors.

The agency’s officials presented the latest cuts to member states at a UN meeting in Geneva on Thursday, according to three diplomats who attended.

However, a UNHCR spokesperson said that, in reality, such large cuts would not be implemented since many posts were never filled in previous budgets, which reflected needs and funding goals, rather than realised donations.