Though Geneva is more than 6.500 kilometres away from Washington D.C, decisions made in the US capital are starting to have a dramatic impact on the city. Cantonal officials have noted an uptick in layoffs, as international organisations and NGOs brace for the impact of Donald Trump’s international aid cuts.

Cuts to American aid leave international organisations scrambling

Writing to the Tribune de Genève (TdG), the Geneva Cantonal Employment Office confirmed that it had started to receive requests from international organisations regarding group redundancies. They added that various humanitarian workers and NGOs based in the city have called them asking for financial advice and assistance.

The news follows the decision by US President Donald Trump to heavily reduce and, in most cases, scrap American funding of international organisations, charities and NGOs. 26 percent of all United Nations funding comes from the United States, and in some cases like the Global Fund and UNAIDS, American aid makes up 40 percent of the budget.

Switzerland's international city under threat from Trump aid cuts

Trump's aid cuts are expected to have a profound impact on Geneva, where around 30.000 workers rely upon the 750 NGOs and other international organisations that call the city home. “International Geneva, as a global centre for diplomacy, cooperation and multilateralism, is weakened. Hundreds of jobs are threatened following the withdrawal of American funding,” cantonal councillor Nathalie Fontanet told the TdG.

Various international structures like the International Organisation for Migration (IOM), the United Nations Commissioner for Refugees and the World Health Organisation are said to be heavily impacted by the cuts, all of whom are based in Geneva. For instance, around 5.000 people working for the IOM worldwide are expected to lose their jobs.

The intervention of the US Supreme Court in the American aid cuts has also left Genevan institutions in limbo. With funding suspended, many don’t know whether to maintain the course and wait for the money to return, or lay off staff in anticipation of the court finding in the president’s favour.

Officials in Geneva monitoring situation closely

Speaking to the newspaper, the head of information and the United Nations Office at Geneva, Alessandra Vellucci, said that while no layoffs had been announced yet, "The perpetuation of the liquidity crisis is affecting some of our programs. In addition, we continue to be very attentive to our expenses." Cost-saving measures, such as reducing official travel expenses and cutting down heating and air conditioning, have already been made at the Palais de Nations.

For their part, the employment office in Geneva said they were monitoring the situation very closely. The Swiss government is also set to propose a public-private fund which would help stabilise the finances of Geneva’s international institutions, though this will likely not arrive before the job cuts are already made.

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