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IOM Faces Major Funding Cuts, Restructures Operations

Lawrence Ankutseby Lawrence Ankutse
March 18, 2025
Reading Time: 4 mins read
IOM Faces Major Funding Cuts, Restructures Operations

International Organization for Migration Headquarter, Geneva, Switzerland

The International Organization for Migration (IOM) is implementing “essential structural adjustments” at its Geneva headquarters and across global operations following a significant 30 percent reduction in donor support for 2025. This includes a substantial decrease in funding from the United States, prompting widespread restructuring within the agency.

The funding shortfall has severe consequences for vulnerable migrant communities, exacerbating humanitarian crises and weakening essential support systems for displaced populations, the UN agency stated in a release on Tuesday, March 18.

As part of the adjustments, IOM is “scaling back or ending projects affecting over 6,000 staff members worldwide” and reorganizing its headquarters by cutting approximately 20 percent of its staff of over 250 positions.

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The agency emphasized that these changes are crucial to ensuring IOM continues providing lifesaving humanitarian aid to migrants and vulnerable communities. “We aim to drive solutions for displaced populations and support governments in managing migration for the benefit of societies and migrants,” the statement read.

IOM operates on a project-based funding model established by its Member States, allowing flexibility to respond to humanitarian needs worldwide. However, when funding for specific projects ends, it can have profound consequences, particularly for communities with limited support alternatives.

The agency reassured that despite financial constraints, it remains committed to prioritizing services for vulnerable populations.

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To address the budget deficit, IOM is relocating positions to lower-cost regional offices and country missions, streamlining staffing, and enhancing coordination with other humanitarian organizations.

These decisions align with budget reform efforts passed by the IOM Council in 2022 and have been communicated to Member States.

“These changes will save costs and enable us to extend greater support globally, providing essential humanitarian assistance in crises worldwide.” 

International Organization for Migration

This restructuring will also help IOM explore new funding avenues, maintain accountability, and optimize operations while ensuring frontline services remain protected. The agency assured that risk mitigation strategies have been implemented, including consultations with affected teams.

IOM acknowledged the difficult impact of these decisions on employees, recognizing their contributions to the organization’s mission.

“We recognize the impact these decisions will have on colleagues who have dedicated years to IOM’s mission. We deeply value the dedication and service of our staff, past and present, who have worked tirelessly to support migrants and displaced communities worldwide.”

International Organization for Migration

At a time when conflict, climate-induced disasters, and economic instability are driving record levels of displacement, migration remains critical to global security, stability, and sustainable development.

The agency urged the international community to continue prioritizing migration governance, reaffirming its commitment to keeping migration and displacement at the forefront of global policy discussions.

IOM Faces Major Funding Cuts, Restructures Operations
IOM operates on a project-based funding model to respond to humanitarian needs worldwide.

Strategic Plan Charts the Path Forward

Despite these financial challenges, IOM recently launched its Strategic Plan 2024–2028, outlining three key objectives to address contemporary migration issues. The strategy focuses on saving lives and protecting people on the move, leveraging humanitarian assistance and technology for more efficient responses.

Another major goal is to find long-term solutions to displacement by utilizing data-driven foresight and partnerships, particularly in climate-vulnerable regions. Additionally, IOM aims to facilitate pathways for legal migration, including initiatives like the Safe Mobility Office in Central and Latin America and the IRIS program, which promotes ethical recruitment practices.

The plan aligns with the 2030 Agenda for Sustainable Development, emphasizing reduced inequality (SDG 10), climate action (SDG 13), and inclusive economic growth (SDG 8). Environmental sustainability and protection-focused approaches are embedded into the strategy, addressing displacement caused by climate change and conflict.

Collaboration with governments, UN agencies, and civil society remains a cornerstone of IOM’s strategy. By strengthening partnerships under the Global Compact for Safe, Orderly, and Regular Migration (GCM) and the UN Secretary-General’s Action Agenda on Internal Displacement, IOM aims to ensure migration serves as a force for development while leaving no one behind.

READ ALSO: Deloitte Flags Revenue Risks in Government’s Tax Cuts

Tags: donor fundingHumanitarian AidIOMMigration CrisisUN agencies
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