Polygon Labs Lays Off 20% Of Its Workforce• February 21, 2023 2:52 pm • Comments
It looks like the crypto layoffs have not ended completely despite the recent bullish rally in Bitcoin and the rest of the crypto markets.
Polygon Labs just announced that they will be laying off 20% of its employees as it says that the action is needed in order to prepare itself for an incoming recession.
This comes during a time when many large tech companies in the traditional financial markets are also doing layoffs which may indicate that it is not just a bear market only for the crypto markets, but for all markets.
20% of Polygon’s total workforce means that around 100 employees are affected which may affect the growth of the Polygon crypto project.
With that being said, Polygon’s native token, MATIC, still remains within the top 10 cryptocurrencies when measured by total market cap.
Investors and speculators believe that there is still potential for the project and that it has a high likelihood of surviving until the next bull cycle.
Despite the layoffs, Polygon has a solid treasury with a balance of over $250 million.https://t.co/9BVEs1pfvg
— Tech Times (@TechTimes_News) February 21, 2023
The news regarding the layoff was made official by Polygon in one of its recent official announcements. The main reason cited by the company for the decision is the consolidation of multiple businesses under Polygon Labs.
The decision to slash 20% of its workforce, which affects 100 positions, was stated as a necessary measure by the team.
“Our departing teammates have played a historic part in building the Polygon technology and ecosystem to be the globally recognized blockchain that it is today.”
The laid-off employees will also receive three months’ severance pay. Sandeep Nailwal, the co-founder of Polygon, also addressed the decision on his Twitter account.
Nailwal also mentioned that the treasury remains healthy with a balance of over $250,000,000 and over 1.9 billion MATIC.
Cost cutting measures have been common for many crypto firms during bear markets as it is an attempt to reduce operational costs in order to increase the probably of business survival.
During such times, investors should note the companies that do not have to do any cost cutting measures and seek out those who are continuing to expand.
This is due to the fact that those companies who continue to expand will be able to acquire bargain deals at low prices which will further accelerate their growth in the long term future.
Of course, such projects would have to provide value and utility in order for them to expand during bear markets and only a few such as Ripple and Algorand have managed to continue to do so.
So far, the price of MATIC , Polygon’s native token, has only slightly reacted to this news and has declined roughly 7 cents in the past 24 hours.
— Sentinus Enterprises (@SentinusPrime) February 21, 2023
Layoffs have continued to spill over into 2023 as the industry continues to cope with a brutal crypto winter and wave of bankruptcies.
According to data collected by CoinGecko, January 2023 was the second-worst month for layoffs in crypto.
Crypto exchanges made up roughly 84% of that, with researchers citing lower trading volumes and declining revenues as key reasons. Coinbase, Crypto.com, Huobi, and many others are just a few of the big-name platforms to have let staff go last month.
It’s not just exchanges that are reeling either.
On Valentine’s day this year, the Solana-based NFT marketplace Magic Eden let go of 22 employees.
“This week, we will focus our energy on helping the people who are transitioning from Magic Eden,” said the project’s co-founder and CEO Jack Lu. “Next week, we will regroup, refocus, and move forward.”
News about @0xPolygon. #Blockchain platform #Polygon announced a 20% staff reduction. The layoffs will affect about 100 employees.
Earlier this year, the company consolidated several divisions under a single brand, Polygon Labs.https://t.co/a93Vl85bTR#CryptoNews #BTC
— LED_crypto (@LED_crypto) February 21, 2023
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