Layoffs: Sam Altman-Backed Startup Tools for Humanity Announces Job Cuts as OpenAI Confidentially Files for IPO
Tools for Humanity, the iris-scanning startup co-founded by Sam Altman, has initiated layoffs to streamline operations and address revenue struggles. The move follows a period of regulatory friction and slow commercial adoption. Concurrently, Altman’s flagship company, OpenAI, has confidentially filed for an IPO, targeting a potential valuation of up to USD 1 trillion.
Tools for Humanity, the identity-verification startup co-founded by OpenAI CEO Sam Altman, has announced a series of job cuts as it undertakes a strategic restructuring. In an internal email circulated to employees on 8 June, the company’s human resources team confirmed that it is making changes to various roles and teams to align with new operational priorities. While Tools for Humanity employs more than 500 staff across its San Francisco and Munich offices, the exact number of personnel impacted remains undisclosed.
Strategic Reset for Iris-Scanning Venture
Founded in 2019, Tools for Humanity is best known for its "World" project, formerly Worldcoin, which utilises a metallic, orb-shaped device to scan users' irises. This process generates a unique "World ID" designed to verify human identity in an era of increasing AI-generated content. Despite achieving a valuation of approximately USD 2.5 billion in late 2025 and signing up millions of users across 160 countries, the company has faced significant challenges in developing a sustainable revenue model. Salesforce Layoffs Continue: Marc Benioff-Led Cloud Giant Cuts Jobs Across Agentforce and Mulesoft Divisions Amid Strategic AI Pivot.
The startup has also contended with persistent regulatory resistance, including investigations and fines in several jurisdictions over its collection of sensitive biometric data. These legal hurdles, combined with the difficulty of converting user growth into durable commercial revenue, have pressured the firm to streamline operations. Management is expected to outline the company's refined strategy and future outlook during a town hall meeting.
Contrasting Fortunes in Sam Altman's Portfolio
The downsizing at Tools for Humanity contrasts sharply with the recent milestones achieved by OpenAI, the flagship artificial intelligence company also led by Sam Altman. OpenAI officially confirmed on 8 June that it has confidentially filed paperwork for an initial public offering (IPO) with the US Securities and Exchange Commission. GitLab Layoffs: Software Giant to Cut 14% of Workforce and Exit 22 Countries in Major Restructuring to Prioritise Artificial Intelligence Initiatives.
While the timing for OpenAI’s public debut remains undecided, market analysts suggest the company could target a valuation exceeding USD 1 trillion. OpenAI’s move to public markets follows a successful legal victory in a high-profile lawsuit filed by Elon Musk, which had previously served as a major impediment to the company's financial planning. As OpenAI positions itself for a potential listing, the divergent paths of Altman’s ventures highlight the distinct challenges of scaling hardware-heavy identity verification versus the rapid growth of generative AI infrastructure.
(The above story first appeared on LatestLY on Jun 10, 2026 07:55 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).