This Tuesday (21), Polygon Labs, a blockchain company providing Web3 infrastructure and issuer of the MATIC token based out of Santa Monica, California (USA), announced that it is reducing its staff by 20%, impacting multiple teams with at least 100 people. This is one of many layoffs plaguing the crypto industry.
Polygon Didn’t Give an Explanation for Layoffs
Recent news may have contributed to the 5.2% decline of MATIC on Tuesday morning, which is part of Polygon’s cryptocurrency portfolio. Ranked ninth in terms of market cap among all digital currencies at $12 billion, according to Coinmarketcap data, Polygon remains highly valuable with its various offerings.
As stated in its official blog, the company insists it is financially secure yet fails to explain any further for recent layoffs. This decision was made as part of a process that merged several divisions earlier this year, and currently, LinkedIn boasts 624 employees.
It was an excruciatingly difficult determination to make, yet a fundamental step on our expedition. Polygon Labs’ founders assured that every employee let go will receive three salaries as severance pay regardless of their rank or length with the company. Financially speaking, the announcement states that Polygon holds more than $250 million in cash alongside 1.9 billion MATIC tokens. To close out this message, we understand how unyielding it is for those departing today and everyone else continuing to manage both Polygon Labs and its protocol.
Layoffs Are Starting to Happen Too Frequent in the Crypto World
As the crypto market continues to suffer from an extended period of economic stagnation, known as “crypto winter,” several prominent cryptocurrency companies such as Coinbase, Crypto.com, Gemini, and Robinhood have had no choice but to make mass layoffs to remain afloat amidst inflationary pressures around the world during 2022 and 2023.
The global economic crisis has had a devastating impact on even the most influential tech companies, like Microsoft. Just 10 days ago, they seemingly abandoned their ambitious metaverse project that was launched only 4 months prior – and let go of its 100-person team in the process. This is yet another indication of how disruptive this situation can be for big businesses.
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