Polygon lays off 20% of its staff

Despite the job losses, the company said it has development plans and resources for the coming years.

Despite the job losses, the company said it has development plans and resources for the coming years.

As a result of a restructuring, the company behind Ethereum's Layer 2 platform Polygon cut about 100 employees. This amounts to about 20 percent of the workforce, the company said in a blog post. The layoffs come after the consolidation of several business units under the core company Polygon Labs. The laid-off workers will receive three months of severance pay, according to Polygon.

The crypto market reacts

The crypto market reacted immediately to the news; at press time, Polygon (MATIC) was about 6.3% lower than 24 hours ago. At the same time, the company said it has ample resources for further development. These include roughly $250 million and $1.9 billion of its own MATIC tokens. A year ago, Polygon raised $450 million from various investors.

Polygon also counts several global players among its biggest partners, including Starbucks, Meta, Adidas and Adobe. Most recently Siemens AG chose the Ethereum scaling solution to launch a crypto security. In March, Polygon plans to take Ethereum scaling to the next level with its zkEVM sidechain. In its announcement, the company said it had outlined a strategy for the coming years to accelerate mass adoption of Web3 with Ethereum scaling.