SAFA — Thousands of UNRWA employees face possible dismissal as a $70 million funding crisis threatens the UN agency's ability to provide education, healthcare and humanitarian assistance to Palestinian refugees, raising fears of further suffering in war-devastated Gaza.

The United Nations Relief and Works Agency for Palestine Refugees (UNRWA) is considering large-scale layoffs across all five areas of its operations: Gaza, the occupied West Bank, Jordan, Lebanon and Syria.

The warning emerged after acting UNRWA Commissioner-General Christian Saunders met with Riyad Zighan, head of the agency's local staff unions, on October 22.

According to Zighan, UNRWA management intends to proceed with workforce reductions because it lacks sufficient funding to cover operational expenses.

Staff unions have been given one week to propose alternatives that could prevent the dismissals.

The number of employees facing dismissal and the timeline for any layoffs have not yet been finalized.

$70 Million Needed to Keep UNRWA Running

The Palestinian Liberation Organization's Executive Committee warned on Sunday, October 25, that UNRWA urgently needs approximately $70 million to cover essential funding requirements, including employee salaries for November and December.

It called on international donors to provide immediate and sustainable financial support, warning that dismissing workers would weaken vital services and deepen the humanitarian crisis facing Palestinian refugees.

The committee rejected mass layoffs and urged UNRWA management to freeze the proposed measures, protect employees' salaries and rights, and pursue alternative solutions.

Gaza Faces the Greatest Humanitarian Risk

The potential cuts carry particularly severe consequences for Gaza, where Israeli military attacks have devastated hospitals, schools, homes and essential infrastructure.

Palestinian families already struggling with displacement, poverty and shortages of basic necessities depend heavily on UNRWA's services.

Reducing the agency's workforce could undermine healthcare delivery, disrupt educational programs and slow humanitarian aid distribution at a time when needs remain overwhelming.

Palestinian refugee representatives warned that the funding crisis must not be resolved at the expense of workers or the communities they serve.

Palestinian Workers Mobilize Against Layoffs

UNRWA's Arab Staff Union in Gaza announced a protest march for Monday, October 26, beginning at 10 a.m. near al-Katiba Mosque in Gaza City and proceeding toward the agency's regional office.

The union called on employees, refugees and displaced Palestinians to participate in opposition to the proposed dismissals.

The Palestinian General Federation of Trade Unions also urged the United Nations, the International Labour Organization and international labor unions to intervene to protect UNRWA workers.

The crisis extends beyond employment. UNRWA, established by the UN General Assembly in 1949, remains a central provider of essential services to Palestinian refugees.

With just $70 million standing between UNRWA and an immediate funding emergency, Palestinian representatives warn that cutting thousands of jobs could ultimately mean cutting vital services to families already struggling to survive.