- The Algorand Foundation announced a 25% workforce reduction on March 18, 2026, affecting approximately 50 staff from a total of fewer than 200.
- The layoffs came one day after US regulators issued joint guidance classifying ALGO as a digital commodity rather than a security.
- The layoffs coincide with a broader wave of 2026 crypto industry job cuts.
The Algorand Foundation said on March 18 that it had cut about 25% of its staff, citing weak crypto market conditions and a worsening macroeconomic environment.
The foundation had fewer than 200 employees, which puts the number of affected roles at roughly 40 to 50, although it did not give an exact figure.
It did not say which teams or programs were affected. In its statement, the foundation said the layoffs were intended to better match its resources with Algorand’s long-term business, technology and ecosystem priorities.
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ALGO was trading at about US$0.09 (AU$0.14) when the cuts were announced. That was roughly 98% below its 2019 peak of US$3.56 (AU$5.45), so, how long can it go at this point?
Funny enough, despite the reduction, the foundation was still listing at least two open roles on its job board, including positions in community management and business development.
The foundation holds about US$38 million (AU$58 million) in dollar-denominated assets and more than 1.1 million ALGO in treasury. The Algorand network is also reported to support about US$83 million (AU$127 million) in tokenised real-world assets on-chain.
A Day After the Regulatory Shift
The announcement came one day after the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) issued joint guidance classifying ALGO as a digital commodity rather than a security.
The guidance cited ALGO as an example of a token that can qualify as a commodity without a futures market. That removes some legal uncertainty around the protocol, but it did not change the foundation’s immediate cost-cutting decision.
Pressure Hits Crypto Markets
The layoffs were announced as the broader crypto market remained under pressure. Bitcoin was trading at about US$71,374 (AU$109K) at the time, around 44% below its October 2025 peak of US$126,000 (AU$192K).
Algorand’s cuts follow other layoffs announced across the crypto sector this year. For instance, Block cut 4,000 jobs in February, Gemini reduced about 25% of its workforce, and OP Labs cut 20 roles. Messari also announced layoffs in the same week as Algorand.
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