Polygon Labs announced on Tuesday that it has laid off 100 employees, or nearly 20% of its workforce, following the consolidation of multiple business units earlier this year, making it the latest digital asset company to make layoffs.
Polygon Labs’ announcement of laying off 100 employees comes amid a tumultuous time for the cryptocurrency industry. The past year has seen a significant decline in the value of digital assets, with more than a trillion dollars wiped out. The market crash has resulted in high-profile bankruptcies, with major players such as Three Arrows Capital, Celsius Network, and FTX filing for bankruptcy protection. The regulatory scrutiny has also intensified, with crypto firms facing tough scrutiny on how they hold funds and conduct business operations.
The decision to combine multiple business units earlier this year and rebrand as Polygon was aimed at making digital coin Ethereum more accessible. However, it seems that the restructuring has resulted in redundancies, with nearly 20% of positions being cut. Polygon Labs has committed to providing employees with three months of severance pay, regardless of their level or tenure at the company.
The job cuts at Polygon Labs follow Digital Currency Group-owned Luno’s announcement of cutting 35% of its total workforce to weather a slump in the cryptocurrency market. The challenging market conditions have prompted companies to restructure and downsize their operations to remain viable in the long run. As the cryptocurrency market continues to evolve and mature, companies will need to adapt quickly to stay ahead of the competition and navigate through the challenging economic conditions.
