Polygon Labs, the organisation developing Polygon Infrastructure (MATIC), has announced the layoff of 20% of its workforce, or about 100 people. Founders say “cash flow remains healthy, with a balance of over $250 million and over $1.9 billion in MATIC. “
Polygon lays off 100 people
Like many other Web3 companies before it, it’s Polygon Labs’ turn to announce a wave of layoffs. The organisation developing Polygon (MATIC), a solution for scaling Ethereum (ETH), has announced that it is shedding 20% of its workforce.
This will impact around 100 people and several divisions within Polygon Labs. This was stated by Sandeep Nailwal, co-founder of Polygon on Twitter:
A big part of this strategy includes unifying all of our teams under Polygon Labs to drive more growth.
As part of this consolidation process, we’ve made the difficult decision to reduce our team by 20% impacting multiple teams and about 100 positions.
– Sandeep | Polygon Build Together! (@sandeepnailwal) February 21, 2023
This decision is said to be due to the fact that “Polygon has grown exceptionally well”, but that the company has not structured itself at the same pace. It comes after reflections on Polygon Labs’ development strategy over the next five years – and with an ambition to drive mass adoption of Web3.
Indeed, Sandeep Nailwal explains that “an important part of this strategy includes bringing the teams together under Polygon Labs”. In other words, the new organisational structure has highlighted the presence of duplicate positions, particularly in the commercial areas.
It should be noted, however, that those who are dismissed as a result of this announcement will receive redundancy compensation equivalent to 3 months’ salary. The founders say that “cash flow remains healthy, with a balance of over $250 million and over $1.9 billion in MATIC”.
Today’s announcement comes several months after Polygon Labs’ head of human resources announced a 40% increase in staff. Indeed, Bhumika Srivastava had said that the company hoped to capitalise on the poor posture of other companies in the sector.
Since the beginning of the bear market, and even more so in the aftermath of the FTX collapse, many companies have been forced to lay off parts of the business. Crypto.com, Coinbase, ByBit, BitPanda, OpenSea and Gemini are all affected.
As a result of this announcement, Polygon’s MATIC price has fallen by 5.1% in 24 hours and is currently trading for $1.41.