The Algorand Foundation has reduced its workforce by 25%, citing global macroeconomic uncertainty and continued weakness in crypto markets as key drivers behind the decision.
The organisation said the layoffs were part of efforts to better align resources with long-term business, technology and ecosystem priorities as it restructures for sustainability.
“This decision was not taken lightly and is in response to the uncertain global macro environment as well as the broader downturn in crypto markets,”
The Algorand Foundation said.
Despite the cuts, the foundation is preparing for a series of product developments, including updates to its AlgoKit developer toolkit, the launch of the Rocca Wallet and expanded commercial tooling.
It also highlighted progress in decentralisation, noting that Algorand’s online stake has doubled from around one billion to two billion ALGO over the past year.
The layoffs come amid a wider trend in the crypto sector, with firms such as Messari also cutting staff and executives pointing to consolidation and restructuring across the industry.
Previous downturns have seen similar workforce reductions at major firms including Coinbase and Gemini, with analysts warning that further layoffs could follow if market conditions remain weak.