Polygon Labs cut 19% of its team, reducing operational efficiency. CEO Marc Boaron highlighted the solution for flexibility in the blockchain sector. The company also announced a 15% increase in compensation and a spin-off of the Polygon ID project.
Polygon Labs, the development team behind the innovative Tier 2 blockchain network Polygon, recently announced a significant reduction in the workforce. The company decided to lay off 60 employees, which represents approximately 19% of the team. This decision was highlighted as a strategic move aimed at improving productivity and efficiency within the organization, rather than being motivated by financial constraints.
CEO Marc Boaron emphasized that the layoffs are a difficult but necessary step to ensure the focus, diligence, efficiency and flexibility of the team. Boiron pointed out that the rapid growth seen during the recent bull market diluted those core qualities, necessitating a more streamlined operation. This approach is in line with the company’s ambition to maintain a competitive edge and continue to provide innovative solutions in the fast-paced world of blockchain technology.
In addition to the workforce reductions, Polygon Labs announced compensation adjustments for remaining employees. This includes a minimum 15% increase in total compensation and the elimination of geographic pay models, demonstrating commitment to the workforce amid organizational change. Additionally, the company revealed plans to spin off Polygon ID, a move that signifies a strategic restructuring to focus on core protocol development in line with its mission.
This series of cuts is not the first for Polygon Labs; a similar reduction occurred in February 2023, when the company cut its staff by 20% during an internal restructuring. Despite these changes, Polygon continues to move forward with its initiatives, including an event in partnership with Layer 3 aimed at incentivizing Polygon’s zkEVM DeFi projects, coupled with a $50,000 prize pool. This initiative is part of a broader strategy to attract new projects and users to the platform, demonstrating Polygon’s continued efforts to adapt and thrive in the evolving crypto landscape.
The restructuring and strategic downsizing reflect a broader trend in the technology industry where companies are looking to adapt to market demands and operational efficiencies. As Polygon Labs moves forward with a new streamlined team and a clear vision, the company remains focused on innovation and its role in shaping the future of the blockchain space.
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