GENEVA The UN refugee agency (UNHCR) said Friday it has been forced to cut more than 760 jobs in a bid to reduce its spending by about $130 million (153.7 million euros) in 2002.

Under the plan, the office of the UN High Commissioner for Refugees will reduce its 4,828-strong staff to 4,065 by the end of next year by abolishing 939 posts but creating 174 to 176 new jobs, it said in a press release.

"What we have done is painful but absolutely necessary to make UNHCR a better-focused, leaner and ultimately a better-funded organization," UN High Commissioner Ruud Lubbers said in a written statement.

The Geneva-based agency has pulled back its projected budget for 2002 to $825 million, which is equivalent to its projected income, AFP reported.

But it said it had been forced to reduce next year's budget by about 14 percent, or $130 million from the initial $955 million expected to be needed this year.

The UNHCR said it would also scale back some field operations, while "considerable savings" would be made from already planned schemes to reduce the agency's involvement in a number of regions, including East Timor and the Balkans.

"While every effort will be made to place UNHCR staff whose posts are being cut, a substantial number of UNHCR workers are expected to leave the organization," the agency added.

Early retirement or voluntary redundancy are being considered as options, it said.

Lubbers also called on UNHCR's 57-Nation Executive Committee, which approves its budget annually, to ensure the agency has enough resources. UNHCR has faced annual shortfalls over the last few years.

The total number of people under UNHCR supervision, including refugees, displaced persons and asylum seekers, was down from 22.3 million in 2000 to 21.1 million in 2001, the organization said last month.