Polygon cuts 20% of workforce in business unit merger

Polygon announces job cuts

Polygon Labs, the main developer of Polygon (MATIC), announced today that it has cut its workforce by 20%, or about 100 people, as part of the consolidation of its business units.

Polygon has grown exponentially.

To continue on this path of stupendous growth we have crystallized our strategy for the next 5 yrs to drive mass adoption of web3 by scaling Ethereum.

Our treasury remains healthy with a balance of over $250 million and over 1.9 billion MATIC

— Sandeep | Polygon Top 3 by impact (@sandeepnailwal) February 21, 2023

Retiring employees will each receive three months’ severance pay regardless of their position or tenure at Polygon Labs. They also thanked them for their role so far, stating that they will continue to be part of the Polygon community.

Polygon Labs has emphasized its sound financial position, stating:

The company raised $450 million in February 2022, but only has $250 million in cash assets left, and in 2022, it plans to partner with many web2 companies and research and development of zkEVM. It has been pointed out that he contributed a lot of funds to

Polygon announced on the 14th that it will launch the beta version of the mainnet of “Polygon zkEVM”, a solution that addresses scalability issues, on March 27th.

connection: Polygon to launch mainnet beta version of “Polygon zkEVM” next month

Kurt Patat, Head of Communications and Community at Polygon Labs, explained that layoffs have taken place across Polygon Labs, with operations and marketing departments being hit the hardest.

Porygon’s new system

In January, Polygon just announced a corporate restructuring plan to unify all employees under the name of a group called Polygon Labs.

Polygon also owned its NFT (Non-Fungible Tokens), Gaming and Metaverse division, “Polygon Studios”. Under the new regime, the “Polygon Studios” brand will be discontinued and the newly established Polygon Labs will be wholly owned by the Cayman Islands-based Polygon Foundation.

Rapid increase in layoffs in January

According to crypto asset (virtual currency) data site CoinGecko, January 2023 saw a sharp increase in the number of people laid off in the crypto industry.

Source: CoinGecko

It recorded 2,806 people in January alone, which is equivalent to 41% of the annual number of layoffs in the previous year in the cryptocurrency industry. Declining cryptocurrency trading volume is believed to be the main factor, with about 85% of the job cuts coming from cryptocurrency exchanges.

The past year has seen other big waves of layoffs in June 2022 after the collapse of the old Terra ecosystem and in November 2022 when FTX went bankrupt.

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