CEO Marc Boiron disclosed this information in a post released on Thursday.
Polygon stands as one of the prominent layer-2 blockchains specializing in Ethereum scaling solutions. It has facilitated more than 2.44 billion transactions, deployed over 1.17 million smart contracts, and achieved a sales volume of $12.8 billion, as per its website . Polygon Labs plays a crucial role in the expansion of the blockchain’s ecosystem.
Boiron explained that the team’s rapid expansion during the recent crypto bull market had led to a dilution of the desired qualities in its workforce.
Boiron stated :
“To move as ambitiously and nimbly as possible where everyone is able to take ownership of what they’re doing, we must create an efficient surgical team, with significantly less bureaucracy. As a smaller team, we can collaborate more, expedite demanding projects and execute at our highest potential.”
Polygon Labs did not immediately respond to a request for comment.
Following the Layoffs, Polygon Labs Boosts Compensation by 15% for Current Employees and Abandons Traditional Geo-Pay Models
In the wake of recent workforce reductions, Polygon Labs has announced a 15% increase in the overall compensation of its existing employees and a departure from traditional geo-pay structures. Those affected by the layoffs will receive a severance package equivalent to two months’ pay, along with continued health benefits through the end of the current month, where applicable.
This announcement comes on the heels of Jack Dorsey’s fintech company Block, which includes subsidiaries such as Square, Cash App, and Afterpay, also implementing staff reductions , affecting around 1,000 individuals or 10% of its workforce.
In the previous year, crypto firms including Ava Labs, OpenSea, Yuga Labs, and Chainalysis experienced layoffs during the fourth quarter, with OpenSea being the most significant, reducing its workforce by 50% in early November, as indicated by the data.
The tech industry, encompassing both large and small companies, has witnessed substantial workforce reductions. In 2024, Layoffs.fyi data shows that approximately 107 tech companies conducted layoffs, impacting nearly 30,000 individuals.
Remarkably, within this current quarter, the number of tech employees laid off has already exceeded the total for the preceding two quarters, and we are just one month into the four-month period.