The United Nations agency responsible for Palestinian refugees has announced the immediate removal of hundreds of former Gaza-based staff from its payroll, citing a severe financial crisis. The agency has faced a dramatic drop in voluntary contributions, partly due to escalating criticism from Israel, which has accused it of links to terror groups and incitement. The affected employees had left Gaza following the outbreak of war in October 2023 and had been unable to work remotely, remaining unpaid for over ten months before being formally separated.

This decision comes as the agency confronts a substantial funding shortfall, with costs far exceeding available contributions and little hope of improvement in the coming year. The move has drawn condemnation from Hamas, which called it a violation of the rights of the affected workers. Despite these challenges, the agency continues to operate within Gaza, where it has lost hundreds of staff members since the conflict began. Meanwhile, Israel has intensified restrictions on the agency's operations, including cutting off essential services to its facilities, amid ongoing disputes over its role and conduct.