Tools for Humanity (TFH), the developer of Sam Altman's crypto identity project World (formerly Worldcoin), has begun internal layoffs, according to Business Insider. The exact number of affected employees has not been disclosed. TFH had approximately 500 staff before the cuts, and the company plans to hold an all-hands meeting on Tuesday to outline the next strategic direction and layoff details. An internal email described the decision as "difficult but necessary to align with the company's next phase of strategy."
Well-Funded but Under Regulatory Fire
TFH is not short on capital. The company has raised roughly $240 million in traditional funding and $135 million via WLD token sales, backed by investors including a16z, Bain Capital Crypto, Khosla Ventures, and Blockchain Capital, at a latest valuation of $2.5 billion. In April 2025, World ID also secured partnerships with Zoom, DocuSign, and Tinder. The World App now boasts 38 million global users across 160 countries.
However, regulatory pressure on the Orb iris scanner has mounted. At least six jurisdictions have imposed bans or strict restrictions: Brazil banned operations in January 2025 with a daily fine of 50,000 reais (~$8,800); Kenya ordered deletion of illegally collected biometric data; Philippines' privacy commission ordered an immediate halt in October 2025; Thailand forced shutdown and deletion of 1.2 million records in November; Hong Kong's privacy commissioner issued an enforcement notice banning all iris and facial scans; Spain imposed a ban. South Korea also levied an $830,000 fine in 2024.
WLD Token in Freefall, Foundation Keeps Selling
WLD is currently trading around $0.48, down over 97% from its all-time high, with a market cap of $1.6–1.8 billion. In March 2025, the World Foundation sold $65 million worth of WLD tokens to fund Orb manufacturing and expansion, followed by another $65 million liquidation in April. Persistent selling pressure, combined with a large token unlock expected in July, continues to weigh on market sentiment.