The Algorand Foundation, the organization behind the Algorand layer-1 blockchain, said it had made the “difficult decision” to reduce its headcount by 25% on Wednesday, citing the crypto slump and wider uncertainty.
“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 in an X post.
The Algorand Foundation said the affected employees were “best-in-class contributors” and described the decision as “incredibly tough,” adding that it would support staff through the transition.
“We believe that we now have a more sustainable alignment of Algorand Foundation resources with the protocol’s long-term business, technology, and ecosystem priorities,” the foundation added.
Algorand Foundation is gearing up for a big year ahead
The staff cuts come as the Algorand Foundation prepares for several milestones for the year ahead, including the next major release of its developer toolkit AlgoKit, the launch of the user-friendly Rocca Wallet, the development of a more robust commercial toolkit, and a focus on post-quantum security.
The Algorand Foundation said in its roadmap progress report in December 2025 that it made “significant progress” toward greater decentralization, having increased Algorand’s (ALGO) online stake from approximately 1 billion to 2 billion ALGO in just over a year.
The crypto industry has a history of cutting staff during market downturns. Bitcoin (BTC) is trading at $71,067 — 44% below its October all-time high of $126,000 — after falling as low as $60,000 on Feb. 6, according to CoinMarketCap.
Related: SEC Chair explains why NFTs fall outside of securities laws
Bullish CEO Tom Farley recently predicted that the crypto sector could see more projects acquired by larger firms in the coming months, potentially leading to redundancies, layoffs, and internal restructuring.
Meanwhile, on Monday, blockchain data provider Messari announced a series of layoffs while its CEO, Eric Turner, stepped down to make way for the company’s “next phase” as an AI-first company.
During the 2022 bear market, Coinbase reduced its workforce by around 18% as Bitcoin hit two-year lows near $21,000. Around the same time, Gemini, the trading platform founded by the Winklevoss twins, reportedly cut 10% of its staff amid the broader crypto slump.
More layoffs could follow if history repeats, with veteran trader Peter Brandt predicting the crypto market may not reach its bottom until the third quarter of this year.
Magazine: Big Questions: Can Bitcoin save you from the dreaded Cantillon Effect?
