Polygon Labs, the agency behind the Ethereum scaling community Polygon, has laid off 60 staff after its acquisition of Coinme and Sequence for greater than $250 million, a supply aware of the matter advised CoinDesk.
The layoffs got here as the corporate is pivoting to a payment-focused blockchain, the supply said, noting that the modifications affected groups throughout the group moderately than anybody operate.
The rumors of a new spherical of layoffs started swirling this week after a number of reports of a 30% workforce minimize. A Polygon Labs spokesperson refuted the reported share, saying the agency didn’t downsize its payroll, because it nonetheless has almost 200 folks after integrating the new acquisitions. The layoffs had been a part of a restructuring following latest acquisitions, the spokesperson said, with out commenting on how many individuals had been affected.
“Forward of integrating workers from Coinme and Sequence into Polygon Labs, we have made changes to maintain our general headcount constant,” the spokesperson said. “These modifications are meant to steadiness additions from latest acquisitions, not to scale back the dimensions of the corporate.”
That is Polygon Labs’ third main spherical of layoffs in as a few years. In early 2023, the company cut approximately 100 employees, representing 20% of its workforce on the time, because it consolidated a number of enterprise models below a single entity. That was followed by another 60-person reduction in February 2024, accounting for 19% of staff, in what the corporate described as a transfer to enhance operational effectivity and efficiency.
In an announcement on social media platform, CEO Marc Boiron additionally acknowledged the layoffs, saying the restructuring was tied to overlapping roles created by latest acquisitions of Coinme and Sequence. The 2 groups are being built-in to help Polygon’s mission of “transferring all cash onchain,” he said.
“Our teammates who’re departing are distinctive, and we’re deeply grateful for every part they’ve contributed to Polygon,” Boiran wrote on X. “We’re dedicated to actively supporting them via this transition.”
The corporate spokesperson said the agency stays well-funded, with over $200 million in treasury and greater than 1.9 billion in MATIC tokens.
Polygon is a scaling resolution for the Ethereum blockchain that goals to allow quicker, cheaper transactions. The community makes use of a Proof-of-Stake consensus algorithm, and its native foreign money, MATIC, is used to pay transaction charges and will be staked to earn rewards. Polygon was first launched again in 2017 because the Matic Community by a number of Ethereum builders, and the community went stay in 2020.
The MATIC token fell about 6% over the past 24 hours, in accordance to CoinDesk information. In the meantime, the broader crypto market gauge, the CoinDesk20 Index, declined about 1% over the identical interval, on the time of writing.
