Crypto Markets Could Be Hit by Polygon Layoffs: The Latest Round of Crypto Job Cuts

Key Takeaways

• Polygon shrinks workforce for efficiency.
• Remaining employees receive bonuses across regions, replacing location-based pay models.
• The tech sector is witnessing significant job cuts, exceeding Q4 2023 numbers in just one month.

Polygon Labs, the team dedicated to developing the layer-2 blockchain Polygon, has made the decision to lay off 60 employees, constituting approximately 19% of its workforce.

CEO Marc Boiron disclosed  this information in a post released on Thursday.

Polygon Labs Announces Layoff of 60 Employees, 19% of Workforce

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.

Polygon Pays Up After Layoffs: 15% Raise for Staff, Geo-Pay Gone

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.

CoinMarketCap data  indicates that Polygon’s token, MATIC, experienced a decline in value after the news but has since rebounded to approximately unchanged levels for the day.

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.

Tech Layoffs Explode in Q1 2024 – Is This the New Normal?

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.

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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