Algorand Foundation cuts workforce by 25%… “macroeconomic uncertainty and market downturn”

The Algorand Foundation has cut roughly 25% of its total workforce.

According to The Block on the 18th (local time), the Algorand Foundation said it carried out the restructuring due to global macroeconomic uncertainty and a downturn in the crypto-asset market.

The foundation explained, “This decision was made carefully, and is a measure to respond to an uncertain macro environment and market slowdown.”

The Algorand Foundation is a nonprofit organization that supports the Layer 1 blockchain Algorand ecosystem, and currently has fewer than 200 employees.

This round of layoffs aligns with a broader wave of restructurings across the crypto industry. Nike subsidiary project RTFKT and the governance protocol Tally have shut down operations, while Messari and Block have also moved to cut headcount, citing factors including the spread of artificial intelligence (AI).

Last week, Optimism developer OP Labs also carried out a headcount reduction of 20 people, citing an organizational restructuring.

The Algorand Foundation also disclosed its financial position. According to a recent report, the foundation holds about $38 million in dollar-denominated assets and more than 1.1 million ALGO.

ALGO currently has a market capitalization of about $805.8 million, ranking 78th in the market, and the network is reported to host about $83 million worth of real-world assets (RWA).

The foundation said, “This restructuring has enabled sustainable resource allocation aligned with long-term business, technology, and ecosystem priorities,” adding that it “will continue to focus on growth of the Algorand protocol and ecosystem.”

Algorand is a project founded in 2017 by MIT cryptographer and Turing Award laureate Silvio Micali.