Polygon Labs, the organization developing the Polygon (MATIC) infrastructure, has announced the layoff of 20% of its workforce, or around 100 people. The founders claim that the “cash position remains healthy, with a balance of over $250 million and over 1.9 billion MATIC”.
Polygon lays off 100 people
Like many other Web3 companies before, it’s Polygon Labs’ turn to announce a wave of layoffs. The organization developing Polygon (MATIC), a scaling solution for Ethereum (ETH), has announced that it is parting ways with 20% of its workforce.
This will impact a hundred people and several poles within Polygon Labs. Polygon co-founder Sandeep Nailwal said 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 💜 Top 3 by impact (@sandeepnailwal) February 21, 2023
This decision is explained by the fact that “Polygon has experienced exceptional growth”, but that the company was not structured at the same pace. It comes as a result of reflections on the development strategy of Polygon Labs over the next 5 years – and with an ambition to promote the mass adoption of Web3.
Indeed, Sandeep Nailwal explains that a “An important part of this strategy includes bringing teams together under Polygon Labs.” In other words, the new organizational structure highlighted the presence of duplicate postsparticularly in commercial areas.
It should be noted, however, that the people evicted following this announcement will receive severance compensation equivalent to 3 months salary. The founders claim that the “Cash remains healthy, with a balance of over $250 million and over 1.9 billion MATIC”.
Today’s announcement comes several months after Polygon Labs’ head of human resources announced a 40% increase in headcount. Indeed, Bhumika Srivastava had declared that the company hoped to take advantage of the bad postures of other companies of the sector.
Since the beginning of the bear market, and even more so following the collapse of FTX, many companies have been forced to lay off part of the company. Crypto.com, Coinbase, ByBit, BitPanda, OpenSea or even Gemini are concerned.
As a result of this announcement, Polygon’s MATIC price down 5.1% in 24 hours and is currently trading for $1.41.
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