Worldcoin Parent Faces Layoffs as OpenAI Moves Ahead With IPO Plans

OpenAI’s confidential IPO filing on Monday marked a major milestone for the company, but another venture associated with CEO Sam Altman is reportedly facing a different challenge.

According to Business Insider, Tools for Humanity, the company behind the World identity-verification project and Worldcoin cryptocurrency, has begun layoffs as it works to address revenue challenges.

Tools for Humanity is best known for its silver orb device that scans users’ irises to verify their identities. The company says the technology is designed to distinguish humans from bots in an increasingly AI-driven digital world. The biometric verification system also supports identity checks linked to the company’s Worldcoin cryptocurrency ecosystem.

The project attracted significant investor backing and reportedly achieved a $2.5 billion valuation, with support from firms including Andreessen Horowitz, Bain Capital, and other blockchain-focused investors.

Despite that backing, the company is reportedly downsizing as it seeks a sustainable business model.

In the United States, Tools for Humanity has partnered with companies such as Tinder, Zoom, and DocuSign. However, its operations have faced regulatory scrutiny in several international markets.

In countries including Kenya, India, and Hong Kong, users were reportedly offered cryptocurrency rewards worth around $50 in exchange for providing biometric data through iris scans. The practice raised concerns about privacy and data protection.

Kenya later suspended World’s operations, citing privacy and financial concerns, while South Korea imposed a fine of approximately $830,000 over alleged violations of local privacy regulations.

The reported layoffs highlight the challenges facing biometric identity projects as they attempt to balance growth, regulation, and public trust. While OpenAI continues to attract attention ahead of a potential public listing, Tools for Humanity appears to be navigating a more difficult path toward long-term commercial success.