Polygon MATIC price drops as Polygon Labs cuts workforce by 20%

Polygon price (MATIC/USD) has plunged by more than 5% after Polygon Labs, the firm behind the Polygon blockchain announced that it had reduced its workforce by 20%.

Polygon earlier last year consolidated multiple business units under Polygon Labs and that is what in part informed the layoffs.

According to Polygon Labs’ communication:

“Earlier this year, we consolidated multiple business units under Polygon Labs. As part of this process, we’re sharing the difficult news that we’ve reduced our team by 20% impacting multiple teams and about 100 positions. This was a painfully hard decision, but a necessary step in our journey.”

Polygon’s growth

Polygon blockchain has grown exponentially over the past few years and is now one of the strongest and largest ecosystems within the crypto space. The blockchain has attracted a lot of blockchain projects as it rivals Ethereum.

Polygon has crystalized its strategy in helping drive mass adoption of Web3 by scaling Ethereum through its Polygon zkEVM whose second testnet was launched in December 2022.

While today’s Polygon job cuts come after several other crypto firms announced layoffs primarily because of the difficult market condition within the crypto space, Polygon’s layoffs are in line with the firm’s earlier move to consolidate its different units under the Polygon Labs. Polygon Layoffs are therefore not an indication that Polygon is suffering from the crypto market.