Crypto Cuts Continue: Algorand Trims 25% Of Workforce

Peter Brandt thinks the crypto market has not hit bottom yet. If he is right, the Algorand Foundation’s decision to cut 25% of its staff may be just one of many similar moves still to come across the industry.

A Leaner Team, A Packed Roadmap

The Algorand Foundation announced the layoffs Wednesday, pointing to a rough stretch in global markets and a sustained pullback in crypto prices as the driving forces behind the decision.

The foundation described the move as painful but necessary, saying it had reached a more sustainable alignment between its spending and its long-term goals.

Affected workers were described as top contributors, and the organization said it would help them through the transition.

What makes the timing unusual is what the Foundation has on its plate for the year ahead. Reports indicate the organization is still pushing forward with several major projects — including the next big update to its developer toolkit AlgoKit, the launch of a new wallet called Rocca, and continued work on post-quantum security.

Cutting a quarter of your team while announcing an ambitious workload is a balancing act, and it remains to be seen whether the remaining staff can carry the load.

Bitcoin Down 44%, And Counting

The layoffs did not happen in a vacuum. Bitcoin is currently trading around $70,000 — roughly 45% below its all-time high of $126,000, which it hit in October.

At its lowest point earlier this year, it fell to $60,000. For foundations that hold portions of their treasury in crypto, a drop like that translates directly into less money to pay staff and fund operations.

Algorand has not been sitting still. Based on a December roadmap update, the Foundation reported it had doubled the amount of ALGO staked online — from around 1 billion to 2 billion — over the span of a little more than a year.

That kind of growth signals momentum on the technical side, even as the financial pressures mount.

The crypto world has been through rounds of staff cuts before. During the 2022 downturn, Coinbase reduced headcount by 18%, and Gemini cut 10% of its workforce. Both moves came as Bitcoin was trading near two-year lows around $21,000.

This week, blockchain data company Messari also announced layoffs and the departure of its CEO, who stepped down as the company shifted its focus toward artificial intelligence.

Bullish CEO Tom Farley recently said the sector could see more consolidation ahead, with larger firms absorbing smaller ones and trimming overlapping roles in the process.

For the Algorand Foundation, the message is straightforward: do more with less, and stay the course.

Featured image from Unsplash, chart from TradingView