Polygon Labs Cuts 20% of Workforce Despite "Exponential" Growth

zerorequiem0x (44)in wormhole3 • last year

Hey Peeps!

On February 21st, Polygon Labs announced, via blog post, the company would laying off 20% of it's workforce, which is roughly 100 employees.

Polygon states that the 100 employees will receive "three months of severance pay, regardless of their level or tenure at Polygon Labs".

Despite this move to cut jobs, Polygon assures they are financially secure with at least $250 million and 1.9 billion MATIC tokens in their treasury.

Over the last 2 years, Polygon has experienced exponential growth and success, which includes major partnerships with Disney, Mastercard, Reddit, Starbucks, DraftKings, Nike, and even the social media giant Meta (Facebook).

Just the other day, the legendary video game company, Square Enix, announced their upcoming NFT-based game, SYMBIOGENESIS, will be launched exclusively on Polygon network.

"Polygon has grown exponentially over the last few years and now includes one of the strongest and largest ecosystems in the space, a vibrant community, and cutting-edge technology. 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." - Ryan Wyatt, President of Polygon Labs

Sandeep Nailwal, the co-founder of Polygon, took to Twitter to relay the news of the workforce cut.

He also informed his followers of a Community call on Discord to address doubts within the community after the move.

"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. This was a painfully hard decision, but a necessary step in our journey. Our departing teammates have played an historic part in building the Polygon technology and ecosystem to be the globally recognized blockchain that it is today. These individuals will always be a part of the 0xPolygon community and we sincerely thank each and every one of them." - Ryan Wyatt, President of Polygon Labs

Some, including myself, find this move a bit puzzling after the insane success that Polygon has had.

Crypto companies would die for the the type of success, but not even Polygon is safe from this crypto winter that seems to never end.

However, I could also see this as a company trimming the fat within their company and committing to efficiency.

What are your thoughts on this news?

Are you bullish or bearish on Polygon (MATIC)?