Employees in the U.S., Canada, and India, where the majority of Polygon’s workforce is based, are most affected by the reduction to about 100 jobs, or 20% of the company’s workforce.
Following the consolidation of several business units earlier this year, Polygon Labs announced on Tuesday that 100 employees, or nearly 20% of its positions, had been let go. This makes Polygon Labs the most recent provider of digital assets to carry out layoffs.
“Earlier this year, we consolidated multiple business units under Polygon Labs. As part of this process, we’re sharing the difficult news that we’ve reduced our team by 20% impacting multiple teams and about 100 positions,” the company said in a release.
“Momentarily, your access to Polygon Labs’ systems, including Slack and email will end; the abrupt nature is a necessary security measure,” read an email to a laid-off employee.
Employees will all receive three months’ worth of severance compensation regardless of their position or length of service, the company stated in a blog.
Sandeep Nailwal, the co-founder of the company, said through Twitter that he will be attending the company’s weekly Discord community call on Wednesday to “address any doubts any community members might have.”
“The treasury remains healthy, with a balance of more than $250 million and more than 1.9 billion MATIC, and we have crystallized our strategy for the next several years to help drive mass adoption of Web3 by scaling Ethereum,” Nailwal said.
Although Nailwal included the words “Top 3 by impact” in his Twitter profile, seemingly drawing comparisons to Binance and Ethereum, the full extent of how Polygon was affected by the 2022 crypto pandemic is yet unknown. The Polygon MATIC native token was trading at $1.37, down more than 7% on the day.