Polygon Labs – the main development team behind the Ethereum scaling network Polygon (MATIC) – has laid off 19% of its workforce in an attempt to create a more “efficient surgical team.”
Though 60 employees were laid off in the process, the remaining workers have been granted a minimum 15% salary raise, effective as of January 1.
Polygon Labs Streamlines Operations
In a Thursday statement, Polygon Labs CEO Marc Boiron said that reducing headcount would allow team members to collaborate more easily and “expedite demanding projects.”
The firm’s website calls Polygon the “value layer of the internet,” whose goal is enabling equitable access to value exchange across the world using blockchain scaling tech like zero-knowledge proofs. Reaching that goal, Borion said, will require “extreme focus, diligence, efficiency and agility.”
“Unfortunately, the team’s rapid growth in the last bull market diluted these qualities, and we must come back to them,” he added.
Polygon’s story is a familiar one within crypto, with numerous industry leaders announcing layoffs over the past two years since the crypto market peaked in 2021.
Binance.US slashed over a third of its workforce last year as a cost savings measure, while Chainalysis dropped 150 employees as its work in the private sector dried up.
Why Cut Employees Now?
As Boiron noted, Polygon’s decision to “right-size” is “unconventional” given that the move is designed to enhance performance rather than cut costs. He added:
“The reality is that achieving our mission often demands challenging decisions, and while difficult, the Founders and I agree that we must move forward in a thoughtful way that gives us the greatest chance to execute successfully.”
Impacted team members have been offered two months of severance pay and health benefits. For existing employees, the firm also plans to scrap its geo-pay models and implement a more streamlined leveling system.
Polygon already axed 20% of its workforce early last year, impacting 100 positions at the time.
Tradfi companies are also reducing staff as of late: Jack Dorsey’s Block has reportedly fired 1000 employees in the last 2 months, while BlackRock plans to let go of about 600 members of its workforce.