The Algorand Foundation, the organization behind the layer-1 blockchain Algorand, has laid off 25% of its staff. The decision, announced on March 18, 2026, is attributed to the prolonged downturn in cryptocurrency markets and ongoing macroeconomic uncertainty.
The foundation stated the move was "an incredibly tough decision" but necessary to create a more sustainable alignment of its resources with the protocol's long-term business, technology, and ecosystem priorities. While the exact number of affected employees was not disclosed, the organization confirmed its continued commitment to its mission of financial empowerment and the development of the Algorand network.
The layoffs occur despite some positive network metrics. The foundation's Q4 transparency report indicated a 4.7% quarterly growth in transactions, and the value of real-world assets (RWAs) on Algorand jumped to $109 million. However, the network still trails significantly behind leaders like Ethereum in this sector.
The news highlights the struggles of the Algorand ecosystem and its native token, ALGO. The token is trading nearly 98% below its 2019 all-time high of $3.56, recently changing hands at around $0.09. It has not traded above $1.00 since January 2022.
This workforce reduction is part of a broader trend of consolidation within the crypto industry. It follows recent layoff announcements from other firms including OP Labs (behind Optimism), PIP Labs (behind Story Protocol), Gemini, and Block, indicating a sector-wide shift towards operational efficiency and financial discipline in a challenging market environment.
