By Nathan Ferguson
Polygon Labs, a platform for Ethereum scaling, has decreased its employees by up to 20% (nearly 100 workers), as announced by the platform on Tuesday. Job eliminations are witnessed at a point when the market is going through the effects caused by the FTX fiasco as well as the subsequent decline.
Polygon Labs Announces a Staff Cut of 20%
In an official announcement published by Polygon Labs, the platform mentioned that it has grown to a great extent in recent years. It asserted that the platform is considered among the most resilient and biggest ecosystems operating in the space. Polygon added that it has cutting-edge technology as well as enormous technology. The treasury of the company is also very healthy.
The current balance of Polygon’s treasury is up to $250M. The supply of the platform takes into account up to 1.9B MATIC tokens. The firm stated that it has established its strategy for moving forward in the next years. As per the firm, this would be assistive in triggering a broad-level adoption of the whole Web3 world by Ethereum scaling. Previously this year, the platform consolidated several business units.
In this way, the 20% cut in Polygon’s workforce is included in the company’s strategy to endure market inconsistency. Nonetheless, it expressed regret over its decision to eliminate 100 employees from the platform as this would put an impact on several teams.
The company added that the respective move was required for the further venture of the platform. In addition to this, the firm appreciated the efforts put in by the people who are now leaving it.
Polygon claimed that the respective people played a significant role in the historic development of the firm, bringing it to the place where it stands at present. According to the company, they have built the ecosystem and technology of the Polygon platform. Keeping this in view, the firm declared that the respective people will remain included in the 0xPolygon community of the firm.
Apart from that, the affected workers will receive severance pay for nearly 3 months after their termination, irrespective of tenure or level while operating at Polygon Labs. The firm moved on to say that the situation will be more difficult for the existing team members of the platform in comparison with those leaving the company as they will have to tackle harder times with a limited headcount.
FTX Fiasco and Mounted Regulatory Measures Compel Polygon to Change Its Stance
Formerly in 2023, the platform assured the community that no impact would be witnessed by them, the regulator activities of the firm, or the employees working under it. A blog post was published by Polygon on January 11 in which it mentioned that the platform is just working finely because it has all of its employees operating in collaboration. Nonetheless, the market conditions likely compelled it to take such a step.
On the contrary, several months back, Bhumika Srivastava (head of human resources at Polygon) stated in September that the company would elevate its workforce by more than 40%. The executive added that the platform expected to take benefit from the bad luck of the rest of the firms operating across the industry.
However, the following months badly influenced the crypto market as well as the wider economy. Particularly, the disastrous crash of FTX and the subsequently elevated regulatory scrutiny dropped the overall valuation of the crypto sector, leading to massive layoffs, including Polygon Labs.
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