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Polygon Fires 20% Of Its Workforce, Here’s Why

Bitcoinist

Bitcoin News / Bitcoinist 145 Views

Polygon Three Indian entrepreneurs founded Polygonondary scaling solution provider for the Ethereum blockchain. Blockchain startup Polygon, based in India, plans to lay off 20% of its workforce. Sandeep Nailwal, a co-founder of Polygon, recently mentioned in a blog post that the layoffs have occurred.

Nailwal mentioned in a blog post that:

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 has decided to go through with the 20% layoff, which comes to approximately 100 employees being fired as a part of a restructuring process.

The affected workforce, about 100 people, has been fired across all teams and positions. The news comes when the industry falters due to an extended downturn in the crypto market.

Just a year ago, in February, Polygon had raised nearly $450 million as it issued MATIC to 40 venture capitalists, including Sequoia Capital, SoftBank Vision Fund II, Elevation Capital, Tiger Global Accel Partners, and Steadview Capital.

Polygon Has Continued To Maintain A Healthy Treasury

Polygon also mentioned that its treasury has remained relatively healthy, with a balance of $250 million and more than 1.9 million MATIC, which is Polygon’s native cryptocurrency. Nailwal stated:

The treasury remains healthy, with a balance of more than $250 million and more than 1.9 billion Matic (Polygon’s native token), and we have crystallised our strategy for the next several years to help drive mass adoption of Web3 by scaling Ethereum.

The employees who have lost their jobs shall be entitled to three months of severance pay, according to the company. Severance pay is not dependent on the employees’ level. The company will pay attention to the tenure of the employment to fulfill the severance pay policy.

Company Restructuring

Polygon is among the companies that have conducted layoffs in the past year to manage their costs better. The company recently announced its plan to restructure corporate entities, which would club all the employees under a group of companies called Polygon Labs. According to the official announcement, the restructuring was conducted to help the company streamline and organize its operations better.

Sandeep Nailwal, Jayanti Kanani, and Anurag Arjun founded Polygon. The company received an investment from US-based billionaire Mark Cuban in 2021.

Polygon also included Mihailo Bjelic from Serbia in its team of co-founders. MATIC was launched through Binance’s initial exchange offering, which is how the company raised more than $5 million.

Other crypto companies have been forced to cut down on their staff in the past months; Gemini reduced its workforce by 10% at the start of the year. Coinbase Global also conducted layoffs this year, firing 950 employees, which was also a part of its restructuring plan.

Polygon
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