Polygon Labs Reduces Workforce by 20% Amid Wave of Layoffs

• After hearing about the layoffs at Polygon, the price of MATIC fell by as much as 6%.
• Affected employees would be offered three months’ worth of severance.

Polygon Labs has reduced its workforce by 20%, citing the need to focus on core competencies across fewer business divisions as the reason for the layoffs. Over one hundred workers were affected; they would be offered three months’ worth of severance as part of the turnaround plan. 

On the other hand, the crypto community has voiced worries about the company’s treasury, which the firm has said stands at $250 million in addition to MATIC assets. After hearing about the layoffs at Polygon, the price of MATIC fell by as much as 6%.

Industry-Wide Layoffs

There has been a wave of layoffs in the cryptocurrency industry in recent months, with even major players like Coinbase cutting staff as the crypto winter has deepened. In light of the layoffs, several in the cryptocurrency world have questioned the team’s spending habits.

In a statement, Polygon’s founders said that the company’s financial situation was stable, but that the layoff decision was strategic. The group has said that consolidating under Polygon Labs would be a top priority in order to accelerate expansion.

The report also revealed that they had holdings of over $1.9 billion in MATIC and over $250 million in other currencies. The crypto sector was curious about the company’s $450 million funding round in early 2022. Polygon Labs’ President Ryan Wyatt responded by saying most of the company’s $200 million was invested in an ecosystem fund and ecosystem initiatives. Polygon (MATIC) has had a huge surge in popularity over the last year, and its market worth of $12.22 billion reflects that. 

Recommended For You:

Polygon Surpasses Dogecoin to Bag 9th Spot in Terms of Market Cap