Crypto.com and Algorand Initiate Layoffs Amid AI Integration and Market Decline

Block, led by Jack Dorsey, began rehiring laid-off employees.

The non-profit organization Algorand Foundation has announced a 25% reduction in its workforce. The decision is attributed to an “uncertain macroeconomic environment and the downturn in the crypto market,” according to the project.

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 macro environment as well as the broader downturn in crypto markets.

These employees have been best-in-class…

— Algorand Foundation (@AlgoFoundation) March 18, 2026

“We have aligned the foundation’s resources with the protocol’s long-term priorities. Our mission remains unchanged: financial empowerment and sustainable ecosystem growth,” the foundation’s statement reads.

The organization is engaged in the development of the Algorand Layer 1 blockchain. According to LinkedIn, it employs fewer than 200 people. The latest financial report indicates the organization holds reserves of approximately $38 million in fiat and 1.1 million native ALGO tokens.

Following the announcement, the asset’s price fell by 3.6% to $0.08. The coin ranks 78th among cryptocurrencies by market capitalization, with a value of $805.8 million.

Betting on AI

Co-founder and CEO of Crypto․com Kris Marszalek announced a 12% workforce reduction—about 180 employees. The primary reason cited was the integration of artificial intelligence into all processes.

We are joining the list of companies integrating enterprise-wide AI. Companies that do not make this pivot immediately will fail. Companies that move slowly will be left behind. Companies that move immediately and pair the best AI tools with top-performers will achieve a level of…

— Kris | ai.com (@kris) March 19, 2026

According to him, the layoffs affected roles that “do not adapt” to the new strategy. Employees have already been notified, and management has promised to support them during the transition period.

He also warned that companies not taking similar steps immediately are “doomed to fail.”

“Those who move slowly will be left behind. Those who act quickly and combine the best AI tools with top performers will achieve a scale and precision previously unattainable,” wrote the CEO of Crypto․com.

Jack Dorsey’s Misstep

At the end of February, Block, led by Jack Dorsey, laid off about 4,000 people as part of a strategy to transition to AI technologies. However, by early March, the firm began rehiring some of the laid-off employees.

On March 3, engineer-designer Andrew Harvard wrote on LinkedIn about returning to Block. He was told the layoff was due to a “technical oversight.”

Tech lead Richard Gesse shared that he was the only one in his team not affected by the layoffs. For two days, he convinced management that he needed people to work on “critical customer infrastructure.”

“I was heard, and they decided to rehire some of the laid-off staff. The teams were not fully restored, but now I have enough people to continue working,” Gesse explained in a post on March 8.

Creative strategist Chain Rennie also noted that he was offered to return a week after being laid off.

When announcing the mass layoffs, Dorsey admitted that the move might not be ideal. He explained the reorganization as a breakthrough in AI, which “fundamentally changes what it means to build and run a company.”

In a conversation with The Guardian, former employees doubted the ability of neural networks to fully replace human workers. Some viewed Dorsey’s move as an attempt to regain investor confidence amid falling stock prices. Over the past six months, Block’s shares have dropped by more than 25%.

In March, the company behind Optimism, OP Labs, laid off 20 people to accelerate internal processes and reduce costs.

Days later, the analytics platform Messari also announced a change in leadership and a wave of layoffs.