Polygon Labs Announces Layoffs, Cutting 19% of Staff
Polygon Labs, the company behind Ethereum scaling network Polygon, has laid off over 19% of its staff in a recent restructuring. Around 60 team members were informed on Thursday that their positions had been terminated. The cuts impacted both full-time and contract positions across all regions and teams.
Previous Layoffs and Industry Impact
This is not the first time Polygon has undergone layoffs. In early 2021, the company laid off 100 employees due to corporate restructuring and redundancies. These cuts were also influenced by the challenging macro conditions in the crypto sector.
Streamlining Operations for Efficiency
Polygon attributed these latest layoffs to the need for a more efficient and streamlined operation. According to Polygon Labs CEO Marc Boiron, the aim is to eliminate bureaucracy and create a smaller, collaborative team that can execute projects more quickly.
Leadership Changes and Departures
Marc Boiron took over as CEO of Polygon Labs in July, following the departure of former executive Ryan Wyatt. Several co-founders and executives have also left Polygon in recent months. Wyatt joined rival Ethereum scaler Optimism as its Chief Growth Officer.
Severance Packages and Salary Increases
Employees affected by the layoffs will receive two months’ severance pay and health benefits until the end of the month. The remaining employees will receive a 15% raise in their combined salary and MATIC token grants, with retroactive effect from January 1.
Polygon’s Position in DeFi Ecosystem
Polygon currently ranks as the sixth-largest decentralized finance (DeFi) ecosystem in crypto, with a total value locked (TVL) of $811.69 million. However, it was overtaken by rival Solana in December.
Hot Take: Polygon Labs Adapts to Market Conditions
Polygon Labs’ recent layoffs reflect the company’s efforts to adapt to market conditions and become more efficient. By streamlining operations and creating a smaller, collaborative team, Polygon aims to execute projects more quickly and effectively. While these changes may be challenging for affected employees, they are necessary for the company’s long-term success in the competitive crypto industry.
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