UN migration agency faces financial strain, lays off thousands amid US aid cuts

The International Organization for Migration (IOM), a United Nations agency, has been forced to lay off thousands of staff as it faces significant financial challenges due to cuts in U.S. foreign aid funding.
The organization, which had about 22,000 employees at the end of 2024, is grappling with accusations that it is aligning too closely with U.S. political agendas, particularly regarding deportation policies.
According to reports, the IOM has faced major cuts to its funding since Donald Trump took office in January, leading to a freeze in most U.S. foreign aid.
These reductions, as stated in the report, have directly impacted the agency’s ability to assist vulnerable populations and support its ongoing projects.
IOM struggles with funding cuts and staff layoffs
The IOM has been particularly affected by cuts to U.S. foreign aid, which traditionally accounted for roughly 40% of its total funding, reports inform.
A spokesperson for the agency warned that these funding cuts would result in “more suffering, increased migration, and greater insecurity” for the people it serves.
“Without this vital support, conditions for the people impacted would be far worse,” the spokesperson said.
The agency, as cited by reports, has already laid off thousands of employees and continues to face pressure to make difficult decisions due to its strained financial situation.
“We have to make some really hard decisions about staff because we simply can’t afford to pay staff when we’re not actually being paid for our work,” IOM chief Amy Pope told AFP in an interview.
IOM faces criticism over alleged support for deportation policies
The IOM has also been criticized for its assisted voluntary return (AVR) program, which some staff and former employees claim is being used to support U.S. deportation policies. The AVR program helps migrants return to their home countries, but critics argue that the program is being used to “bluewash” U.S. deportation efforts under President Trump.
- Bluewash describes an attempt to present a controversial or problematic action in a more positive or acceptable light by associating it with a seemingly benevolent or humanitarian effort.
- IOM announced on February 1st that it would expand its activities in Latin America and the Caribbean, including efforts to help migrants return to their home countries in Mexico, Guatemala, Honduras, and Panama.
- This effort was described by the spokesperson as “a lifeline for stranded migrants,” emphasizing the urgent need to support those who cannot stay where they are and need help returning home “safely and with dignity.”
However, some staff members feel the organization is aligning too closely with the U.S. government, damaging its reputation.
Tensions rise as more layoffs are expected
Staff at IOM have expressed concern over the ongoing layoffs, with some employees fearing further cuts. One former employee, as stated in the report, expressed that the pace of the layoffs was “quite a shock,” while others have described the situation as “terrifying” due to the pressure on managers to meet cost-cutting targets.
At IOM headquarters in Geneva, employees are bracing for additional job cuts. An internal memo seen by AFP indicated that directors were instructed to reduce department costs by specific percentages, leading to fears that up to one-third of the 550 staff members at headquarters could lose their jobs.
The IOM has received complaints from staff and union representatives about the abrupt layoffs, warning that these cuts could harm both the employees and the migrants they serve.
IOM denies scrubbing content, defends its mission
Another issue that has sparked controversy is the allegation that the IOM removed content from its website promoting diversity, equality, and inclusion (DEI) in response to pressure from the U.S. government.
- A report by Devex suggested that the agency had scrubbed content that could be seen as promoting DEI, which is believed to be a policy opposed by the Trump administration.
- In response, IOM stated that it had relaunched its global website after a year-long review, refining the content to align with evolving contexts and humanitarian principles.
- However, some staff members have expressed frustration, stating that the agency should not lose its identity while aligning with certain U.S. priorities.
These challenges show the difficult position the IOM is in as it processes its way through financial instability, shifting political realities, and growing criticism from within. As the agency continues to cope with the impact of U.S. funding cuts, the future of its staff and its mission remains uncertain.


