Polygon Labs, the first well-structured, easy-to-use platform for Ethereum (ETH) scaling and infrastructure development has announced the layoff of 100 members of its team. This figure comes off as approximately 20% of the entire company. Further offering an explanation, the firm cited the global crypto’s harsh market conditions and its plan to restructure its operations as the reasons for the cutback.
According to the outfit’s official blog post, the decision to cut down its workforce was difficult but also very necessary. It also noted that all of the affected employees had at a particular time played a vital role in the company including offering immense support in their respective positions. As such, the affected employees will be given three months compensation fee irrespective of their rank or years of working at Polygon Labs.
Additionally, the recent layoff which affected multiple positions across several teams follows after the company consolidated all of its business units under one organization dubbed Polygon Labs. The restructuring was intended to help the network streamline and organize its operations better as the crypto winter lingers on.
Even though the platform secured $450 million in a round led by Sequoia Capital just about a year ago, it now maintains a balance sheet of $250 million with over 1.9 billion MATIC tokens which is the network’s native token in circulation.
Beyond Polygon: Other Staff Reduction in the Crypto Market
It is not surprising that digital firms are reducing their staff size because the poor market performance has resulted in dwindling revenue thereby necessitating drastic actions to stay afloat.
Back in January, the Singapore-based digital assets trading platform Crypto.com announced a 20% reduction in its employees worldwide amidst the challenges the firm is facing. However, the firm’s decision was not based on staff abilities in carrying out duties but rather on the economic downturn in the industry. Recall that, this was not the first layoff for the platform as it dropped some of its employees in July 2022.
Equally, in the same month, Gemini crypto exchange announced its intention to reduce its employees by 10% as a result of the industry’s current financial challenges, together with the fraud committed by dishonest players.
