The Algorand Foundation has laid off 25% of its workforce citing the “global macro environment” and broader crypto market downturn. This follows similar cuts at Hedera, Blockworks, and Crypto.com, with AI adoption cited as another factor disrupting the crypto labor sector. Community reaction was mixed, with one critic noting the Foundation’s $18 million annual expenditure and questioning its impact amidst declining chain activity.
The Algorand Foundation, steward of the Algorand blockchain, announced significant workforce reductions. It stated the restructuring was necessary to sustainably align resources with long-term goals amid a challenging “global macro environment” and “broader downturn in crypto markets.”
These cuts reflect broader industry pressures. The Hedera Foundation declared some functions redundant earlier this year, while crypto media outlet Blockworks axed its entire newsroom last year. Crypto.com recently laid off 12% of its staff, citing the need to position itself for rising AI capabilities.
Community reaction to the Algorand Foundation’s decision was divided. Some expressed sympathy for affected employees. One critic pointed out the Foundation spent approximately $18 million annually and stated, “Using macro uncertainty as cover for doing this feels piss weak. Love the tech. Hate the leadership.”
The Foundation’s transparency report indicated it spent about $12 million by September 2025 after selling 66.4 million ALGO tokens. Meanwhile, activity on the Algorand chain has declined. DeFiLlama data shows total value locked has dropped by half from approximately $80 million to below $40 million, with daily fees consistently under $50.
The network’s native token, ALGO, was trading around $0.088 at the time of writing, down approximately 10%. This movement occurred amid a broader market pullback following trader caution after a Federal Reserve rate decision.
