Tools for Humanity, the iris-scanning startup behind the World digital identity network, has cut staff, CEO Alex Blania announced Monday in an internal memo. The layoffs mark a strategic pivot as the company, co-founded by Sam Altman, enters what leadership called its "next phase."
The timing signals a divergence between two of Altman's major ventures. While OpenAI has surged in valuation and influence following ChatGPT's explosive growth, Tools for Humanity faces headwinds in its core mission of building a decentralized identity protocol. The company rebranded Worldcoin to World in October 2024, attempting to distance itself from the WLD token and regulatory scrutiny that dogged its early years.
World has struggled with adoption friction and regulatory resistance across jurisdictions. Several countries, including the UK and parts of Europe, tightened restrictions on biometric data collection for proof-of-personhood schemes. The protocol's native token, WLD, peaked at $16 in mid-2023 but has traded below $3 for extended periods, reflecting weak market confidence. As of early 2025, WLD shows minimal recovery traction despite the rebranding effort.
The job cuts underscore operational realities. Building a global identity network requires sustained capital burn and regulatory navigation that has proven costlier and slower than initially projected. Altman's attention has shifted dramatically toward advancing AGI through OpenAI, which now dominates his time and focus. That concentration of effort mirrors the gap widening between his two ventures.
Tools for Humanity previously raised $115 million in Series C funding in July 2024, valuing the company at $1.15 billion. That funding round failed to spark meaningful momentum. The company operates Orb locations in limited markets, where users scan their irises in exchange for WLD tokens. Participation remains modest relative to the infrastructure investment required.
The internal memo cited strategic refocusing rather than financial distress, but the language typical of restructuring announcements masks underlying challenges. Tools for Humanity must compete with other identity and biometric solutions while navigating fragmented global regulatory frameworks. Without Altman's direct operational involvement, execution risk rises.
OpenAI's trajectory under Altman has delivered tangible products and mainstream adoption. World has delivered neither. That stark contrast explains why Altman's ventures now diverge sharply. One commands boardroom attention from every major tech player. The other fights for relevance in a market skeptical of its privacy tradeoffs and doubtful of its decentralization claims.