Tools for Humanity cuts staff as regulators press Worldcoin

Tools for Humanity informed employees in an internal email on Monday that it is reducing headcount while shifting company strategy. A town hall set for Tuesday is expected to outline the scale of the cuts and plans for reorganizing teams.

The internal email stated the changes reflect the next phase of the company’s priorities and warned that some roles and teams will be affected. The note did not specify how many positions will be eliminated.

The company employs more than 500 people and is valued at about $2.5 billion. Investors include Andreessen Horowitz, Bain Capital and Khosla Ventures.

Tools for Humanity is the lead developer of World, a digital identity network previously called Worldcoin. The project uses a volleyball-sized device called the Orb to scan irises and create digital IDs; participants have received Worldcoin (WLD) tokens for scans.

Regulators have taken action against the firm. South Korean authorities fined the company 1.1 billion won (about $830,000) for alleged violations related to personal data collection and transfers. Brazil’s National Data Protection Authority ordered the company to stop paying residents in exchange for iris scans.

The Brazilian order removes a payment-based method the company had used to recruit participants. It is not yet clear which offices or functions will see the largest reductions.

Company executives told staff the town hall will explain where remaining resources will be focused and how teams will be reorganized. The firm has not reported steady revenue from Orb deployments.

Tools for Humanity was co-founded by Sam Altman and Alex Blania. The company has faced regulatory scrutiny while developing its biometric identity product.