Polygon Labs Slashes Workforce by 20% Amid Consolidation Effort

Ethereum scaling platform Polygon trimmed its workforce by 20%, affecting 100 job positions, the company said in a Tuesday announcement. It added that the move represents a part of Polygon’s efforts to consolidate several business units in the recent period.

Polygon Labs Let Go of 100 Employees

Ethereum layer 2 (L2) scaling solution Polygon announced it has laid off 20% of its staff, or 100 employees. The decision comes from the firm consolidating multiple business units and a persisting crypto market downturn highlighted by several collapses in the past year.

“Earlier this year, we consolidated multiple business units under Polygon Labs. As part of this process, we’re sharing the difficult news that we’ve reduced our team by 20% impacting multiple teams and about 100 positions.”

– Polygon wrote in the blog post.

The announcement marks a sharp U-turn from Polygon’s initial plans to grow its workforce by more than 40%. The company’s global head of human resources (HR) said Polygon hoped to capitalize on the misfortune that battered other companies in the crypto market.

But since then, the overall sentiment in the crypto market and the broader economy has been exacerbated after the FTX implosion, and fresh regulatory pressures weighed further on the crypto prices. This happened amid difficult macroeconomic conditions involving record-high inflation and aggressive interest rate hikes. Polygon said employees affected by the layoffs would receive three months of severance pay, regardless of their level or tenure at the firm.

Polygon Reports a Healthy Treasury of $250M and 1.9B MATIC

Polygon, previously known as Matic Network, is an L2 scaling solution for Ethereum that addresses the scalability issues of the world’s second-biggest blockchain. The platform allows developers to build blockchain networks compatible with Ethereum using various scaling solutions, including Plasma chains, sidechains, and state channels.

Polygon has seen robust growth over the past few years. It has become a leading Ethereum L2 scaling solution thanks to its technical innovation, community engagement, and partnerships with other blockchain projects. The platform surpassed Binance’s BNB Chain in terms of average daily transactions per week several times last year, partly due to its increasing number of GameFi users.

In today’s announcement, Polygon said its treasury remains healthy, reporting a balance of over $250 million and more than 1.9 billion MATIC tokens. The company claims it has “crystallized our strategy for the next several years to help drive mass adoption of web3 by scaling Ethereum.”

This article originally appeared on The Tokenist