Polygon Labs, the developer firm behind the layer-2 rollup network Polygon, made a significant workforce adjustment by laying off approximately 19% of its employees, affecting around 60 roles on Thursday. The decision was communicated through a blog post by Polygon Labs CEO, Marcboiron.
In the blog post, Marcboiron stated that the company opted to reduce its team by 60 members, constituting about 19% of its workforce, not due to financial constraints but with the goal of improving overall performance. The CEO acknowledged that the team’s rapid expansion during the previous crypto bull market had led to a “dilution” of the desired qualities in its employees.
“This is especially true because achieving this mission is no easy feat; it requires extreme focus, diligence, efficiency and agility — all qualities that are enhanced by the values we seek to embody at Polygon Labs. Unfortunately, the team’s rapid growth in the last bull market diluted these qualities, and we must come back to them.”Marc Boiron, CEO
In an effort to support existing employees, Polygon Labs is implementing a 15% increase in total compensation and is also “eliminating traditional geo-pay models.” For those affected by the layoffs, the company has committed to providing two months of severance pay and health benefits through the end of the month where applicable.
Following the announcement, Polygon’s native token, MATIC, experienced a decline in value. However, it subsequently rebounded to nearly unchanged levels on the day, according to data from CoinMarketCap. The market’s reaction reflects the dynamic nature of cryptocurrency valuations in response to company-related developments.