Ethereum scaling project Polygon Labs has announced that it has pruned its workforce by 20% after an internal consolidation of its teams.
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 Nailwal | sandeep. polygon 💜 (@sandeepnailwal) February 21, 2023
The project made the disclosure via a blog post as it became the latest Web3 firm to announce job cuts. Unlike other industry announcements, Polygon Labs confirms that the layoffs are not due to financial difficulties or the prevailing macroeconomic conditions.
In its post, the project maintains a healthy cash reserve with a balance of over $250 million and 1.9 billion MATIC tokens. The post confirms that the move was merely an internal restructuring move designed to “crystallize” its strategy for the coming years.
“Earlier this year, we consolidated multiple business units under Polygon Labs. As part of this process, we’re sharing the difficult news that we’ve reduced our team by 20% impacting multiple teams and about 100 positions. This was a painfully hard decision, but a necessary step in our journey,” the post read.
Affected employees will be compensated with three months of severance pay, irrespective of their positions and tenure within Polygon Labs. Polygon co-founder Sandeep Nailwal took to Twitter to express faith in Polygon’s future and thanked the departing employees for their invaluable contribution.
“Our departing teammates have played a historic part in building the Polygon ecosystem to be the globally recognized platform that it is today,” said Nailwal. “These individuals will always be a part of the 0xPolygon community and we sincerely thank every one of them.”
Our departing teammates have played a historic part in building Polygon ecosystem to be the globally recognized platform that it is today.
These individuals will always be a part of the 0xPolygon community and we sincerely thank every one of them.https://t.co/fUk7RnSlwo
— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) February 21, 2023
Polygon’s internal restructuring process will see the discontinuation of the brand name Polygon Studios. Going forward, Polygon Foundation will own the newly minted Polygon Labs, with former YouTube head of gaming Ryan Wyatt saddled with the role of President.
Web3 is bleeding from job cuts
Since the start of the year, digital currency exchanges have been announcing job cuts with increasing regularity, putting it on course to exceed the figures from 2022. Coinbase (NASDAQ: COIN) started things off with a 20% staff layoff as Silver Gate Capital, Genesis, and Huobi followed suit with 40%, 30%, and 20%, respectively.
The number of positions affected by the cuts has since exceeded 2,000 as the trend shows little to no signs of slowing down. Crypto.com’s layoffs of nearly 900 employees were the largest of the lot, with the affected firms blaming a reduction in trading volumes and grim macroeconomic conditions as the primary reasons for the terminations.
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