Polygon Labs, the team behind the layer-2 blockchain Polygon, has made the decision to lay off 60 employees, which accounts for approximately 19% of its staff. This announcement was made by CEO Marc Boiron in a post published on Thursday.
Key Takeaway
Polygon Labs has laid off 60 employees, approximately 19% of its staff, in an effort to create a more efficient and agile team amidst the growth of the Polygon chain.
Polygon’s Impact on Ethereum
The Polygon chain is a prominent layer-2 blockchain that focuses on scaling Ethereum. It has facilitated over 2.44 billion transactions, deployed more than 1.17 million smart contracts, and has recorded a sales volume of $12.8 billion, according to its website. Polygon Labs plays a crucial role in building out the blockchain’s ecosystem.
Reasons Behind the Layoffs
Boiron cited the team’s growth during the last crypto bull market as a factor that “diluted” the qualities they sought in their employees. He emphasized the need to create a more efficient and agile team with less bureaucracy, allowing for enhanced collaboration and the ability to execute demanding projects at their highest potential.
Impact on Employees
In response to the layoffs, Polygon Labs is providing a 15% increase in total compensation for its remaining employees and is eliminating traditional geo-pay models. Those who have been laid off will receive two months of severance and health benefits through the end of the month, where applicable.
Market Response
Following the news, Polygon’s token, MATIC, experienced a decline but has since rebounded to levels similar to those before the announcement, according to CoinMarketCap data.
Tech Layoffs Trend
This announcement comes in the wake of other tech companies, including Jack Dorsey’s fintech company Block, implementing layoffs. The tech industry has seen a significant number of layoffs in recent times, with data indicating a rise in the number of employees affected by such decisions.
