Peter Brandt thinks the crypto market hasn’t bottomed yet. If he’s right, the Algorand Foundation’s decision to cut 25 percent of its workforce may be one of the more similar moves the industry is yet to face.
Team Leaner, Packed Roadmap
The Algorand Foundation announced the layoffs on Wednesday, citing the expansion of global markets and the continued decline in crypto prices as the reason for the decision.
The foundation described the move as painful but necessary, saying it had reached a stable balance between its spending and its long-term goals.
The affected workers were described as having a big stake, and the organization said it would help them with the change.
What makes the timing unusual is that the Foundation has something for the coming year. Reports indicate that the organization is still moving forward with several major projects – including the next major update of the AlgoKit developer toolkit, the launch of a new wallet called Rocca, and ongoing work on post-quantum security.
Cutting a quarter of your team while announcing a tough job is a balancing act, and it remains to be seen whether the remaining employees can carry the load.
Today, the Algorand Foundation made the difficult decision to reduce our workforce by 25%. This decision was not taken lightly and is in response to the uncertain global environment and the broader decline in crypto markets.
The staff were top notch…
– Algorand Foundation (@AlgoFoundation) March 18, 2026
Bitcoin Down 44%, And Counting
The layoffs did not happen in a vacuum. Bitcoin is currently trading at around $70,000 – about 45% below the high of $126,000, which was reached in October.
At its lowest point earlier this year, it dropped to $60,000. For foundations that hold parts of their wealth in crypto, a decline like that translates directly to less money to pay staff and fund operations.
Algorand was not silent. Based on the December roadmap update, the Foundation reported that it has doubled the amount of ALGOs placed online – from around 1 billion to 2 billion – in just over a year.
That kind of growth reflects momentum on the technology side, as financial pressures grow.
This Is Not The First Time The Crypto Industry Is Doing This
The crypto world has gone through rounds of layoffs before. During the 2022 recession, Coinbase cut its headcount by 18%, and Gemini cut 10% of its workforce.
Both moves came as Bitcoin was trading near a two-year high of 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 to a focus on artificial intelligence.
Bullish CEO Tom Farley recently said the sector could see more consolidation to come, with larger firms taking on smaller ones and reducing complementary roles in the process.
At the Algorand Foundation, the message is straightforward: do more with less, and always learn.
Featured image from Unsplash, chart from TradingView
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