Polygon Labs lays off 20% of its workforce

In the midst of a crypto market surge, Polygon Labs, a top blockchain tech company, has disclosed a reduction of about 100 employees, equating to a 20% staff cut spread over various teams.

Polygon Labs downsizing

Polygon Labs published a blog post revealing that the staff reduction was an essential part of the company’s evolution and acknowledged the significant contribution of the dismissed employees to Polygon’s current technology and ecosystem. Additionally, Polygon Labs has pledged to compensate the affected individuals with a three-month severance package.

Despite reducing its workforce, Polygon Labs has confirmed that its financial situation remains robust, boasting a balance sheet of more than $250 million and 1.9 billion MATIC, the native cryptocurrency of Polygon. Nevertheless, according to CoinMarketCap, there has been no noteworthy MATIC activity since the announcement was released.

As of now, MATIC is being traded at $1.41, and its market cap exceeds $12 billion. In the last 24 hours, the coin has experienced a decline of more than 5%; however, it has also observed an upswing of more than 18% within the last seven days.

Polygon Labs’ choice to downsize its staff coincides with the eagerly anticipated debut of the zkEVM Mainnet beta, slated for March 27.

Layoffs from other crypto companies

Polygon Labs’ decision to cut its workforce coincides with a prevalent pattern of downsizing in the cryptocurrency field. In the past few months, numerous companies, such as ConsenSys, Huobi, and Bitmain, have similarly reduced their staff count.

The layoffs may have taken the industry by surprise, given Polygon’s status as a leading player in the blockchain technology sector. Nevertheless, it remains unclear how the reduction in staff will affect the company’s activities and long-term objectives.