BlocksInform
Ethereum layer-2, a polygon of scale solutions, has announced that it has laid off approximately 20% of its existing workforce, in the context of a broader restructuring of the company, according to sources.
The layoff announcement comes almost one year after the Layer 2 solution raised $450 million as part of a sequoia india round of funding.
20% Of Employees Laid Off
Layer-2 startup Polygon has become the latest company in the crypto space to announce layoffs, with the company set to lay off 20% of its workforce in the coming few days. According to the company, the redundancies are part of a broader restructuring of the company, thanks to the crypto winter underway. Polygon had grouped a number of companies under the polygon labs banner, the current layoffs being considered as part of the same process. The layer-2 scaling solution elaborated in a blog post, stating,
“Earlier this year, we consolidated multiple business units under Polygon Labs. Through this process, we are letting you know that we have reduced our team by 20%, impacting several teams and approximately 100 positions."
Polygon also posted on the blog that employees affected by the layoffs would receive three months' severance pay. This amount will be paid regardless of their starting age or level. The decision to reduce the company's workforce by 20% had an impact on approximately 100 polygon employees and was described as a required action by the polygon team.
"Our departing teammates have played a historic role in the construction of the Polygon technology and ecosystem to make it the world-class blockchain it is today."
Treasury Remains Healthy
The Polygon team also stated that it has been able to crystallize its strategy for the next five years to drive the mass adoption of Web 3.0 through the scaling of Ethereum. He also added that his cash remained very sound, with a balance of more than $250 million and an extra 1.9 billion chips.
The Treasury remains in good condition, with an outstanding balance of over $250 million and over 1.9 billion MATI, and we have crystallized our strategy for the coming years in order to contribute to the massive adoption of the Ethereum web3."
An important part of Polygon's strategy is the inclusion of all of our teams as Polygon Labs to help further drive growth. However, according to the co-founder of the polygon sandeep nailwal, these changes would not have any impact on the daily functioning of polygonal laboratories. Polygone labs is a group of businesses belonging to the polygon foundation, which is composed of employees who participate in the larger polygon ecosystem.
The entity also owns the funds used by the organization as well as the assets it has developed. The foundation is based in the Cayman Islands and has a number of cofounders of the protocol as members of its board of directors to support polygon and polygon laboratories. The firm had stated at the beginning of the year,
“It is decentralized technology existing at the behest of validators and other third parties. Polygon neither has, nor could have, any employees since it represents a series of decentralized, and generally open source, technology.”
Other companies that have laid off workers.
The news of the layoffs comes almost a year after the re-sizing solution successfully raised about $450 million in a financing cycle led by Sequoia Capital India. The financing cycle was attended by a host of large venture capital companies, including softbank, galaxy interactive, galaxy digital, tiger global, republic capital, and others.
However, with the layoffs, the polygon is in addition to a long list of Indian start-ups that have laid off employees while funding runs out. Chargebee, cars24, byjuice, lead, ola, oyo et meesho. In addition, it was reported on Monday that the community and safety management started mygate had dismissed 30% of its staff.
In addition, the crypto ecosystem has also experienced a wave of layoffs, an extended crypto winter and an unfavourable regulatory environment that has had a significant impact on businesses. At the beginning of the year, announced that it was laying off around 1000 employees. It was the second corporate reform in the last year. Huobi also announced that it was planning to lay off 20% of its staff, thanks to the downturn in the crypto markets and the collapse of FTX. In 2022, Crypto.com also announced that it was firing around 260 employees to optimize profitability better.
