Polygon Labs Cuts Staff Amid Economic Uncertainty

Polygon Labs, the company behind Ethereum’s popular Layer-2 scaling solution, has announced a reduction in workforce by 20%.

The decision to downsize was made as part of Polygon Labs’ consolidation process, in which multiple business units were merged. The layoffs will affect around 100 positions across multiple teams.

Despite the tough decision, Polygon Labs has offered all affected employees three months of severance pay, regardless of their level of tenure.

The announcement comes amid a wave of layoffs among crypto companies, all affected by the recent collapse of the FTX exchange.

Filecoin developer Protocol Labs cut 21% of its staff at the beginning of February, and ConsenSys, the developer behind Metamask, slashed over 100 employees just a few weeks ago.

Polygon Labs is the latest company to be affected by the ongoing economic challenges facing the crypto industry.

The Matic token, a product of Polygon Labs, was down 6.02% in the past 24 hours, trading at US$1.40 at 10:00 p.m. in Hong Kong, according to CoinMarketCap data.

Despite the setback, Polygon Labs is committed to continuing its work in the blockchain space and remains optimistic about the future of its Layer-2 scaling solution.