Tools for Humanity, the eye-scanning startup co-founded by Sam Altman, is laying off employees as the company changes parts of its workforce and teams, according to an internal email reviewed by Business Insider (09/06).

The company said the decision was made as it moves into the next stage of its strategy and operating priorities. It has not disclosed how many employees will be affected.

Company Confirms Workforce Changes

In the email sent by the people team on Monday, Tools for Humanity informed staff that some roles and teams across the company would be impacted.

“As we enter the next step of our company strategy and operating priorities, we have made the hard decision to make changes to some roles and teams across the company,” the email stated.

The company also said it would provide more details about its strategy and plans during a town hall meeting scheduled for Tuesday.

Startup Faces Revenue and Regulatory Challenges

Tools for Humanity has faced challenges in demonstrating how its iris-scanning Orb can generate revenue.

The company has also struggled to gain support from regulators despite reaching a valuation of $2.5 billion and attracting millions of sign-ups.

Backed by Major Investors

According to PitchBook, the venture has received hundreds of millions of dollars in funding from investors, including Andreessen Horowitz, Bain Capital, and Khosla Ventures.

Tools for Humanity employs more than 500 people, according to information on its website. The company did not immediately respond to a request for comment regarding the layoffs.

Orb Technology and Worldcoin System

Tools for Humanity was founded with the goal of using iris scans to verify that a person is human and not an AI bot.

Its Orb device, described as a shiny sphere about the size of a volleyball, scans a person's iris to create a digital identity.

People who take part in the process can receive Worldcoin tokens, a cryptocurrency distributed by the Cayman Islands-based World Foundation.

PHOTO: BUSINESS TODAY

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