Polygon Labs Cuts Staff by 20%

Polygon Labs, a major player in the cryptocurrency industry, has announced that it will be laying off 20% of its employees, affecting 100 positions. The decision was made as a necessary measure to consolidate multiple businesses under Polygon Labs, according to a recent announcement made by the company.


Promising Start Marred by Layoffs

The layoffs come as a surprise, considering the promising start of cryptocurrency prices in 2023, with many seeing double-digit increases. However, the industry has been volatile and unpredictable, prompting several tech behemoths and cryptocurrency companies to start firing employees in preparation for a potential recession.

Polygon Labs acknowledged the contribution of the departing employees in building the company’s technology and ecosystem, which has become a globally recognized blockchain platform. The laid-off employees will also receive three months’ severance pay as a form of compensation.

Sandeep Nailwal, the co-founder of Polygon, took to his Twitter account to address the decision. Nailwal assured that the treasury remains healthy, with a balance of over $250,000,000 and over 1.9 billion MATIC. He also thanked the departing employees for their dedication and commitment to the company.


Downsizing Trend Continues

Polygon Labs is not the only cryptocurrency company that has downsized its workforce in the wake of an uncertain economic climate. Several other firms in the industry, including Bitmain, BlockFi, and BitGo, have also laid off employees.

The decision to downsize the workforce at Polygon Labs is expected to lead to cost savings for the company. However, it is important to note that the impact of the layoffs on the company’s future performance remains to be seen.

Polygon Labs has maintained that the layoff is a necessary measure to consolidate the company’s businesses and ensure its survival in the face of an impending recession. While the decision is regrettable, the company has provided its departing employees with three months’ severance pay and acknowledged their contribution to the company’s success. The move is in line with similar decisions taken by other cryptocurrency firms in the industry.