Polygon Labs, the team behind the Layer-2 rollup network Polygon, has announced the elimination of 60 positions, which represents about 19% of its workforce, as detailed in a blog post published on Thursday.
The company clarified that the decision to downsize was aimed at improving performance and was not driven by financial constraints. Additionally, it was mentioned that the Polygon ID team is expected to spin off from the company in the near future. For employees affected by the layoffs, Polygon has committed to providing a minimum of a 15% increase in total compensation, along with discontinuing geographic-based pay models.
This recent staff reduction comes less than a year after a previous round of layoffs in February 2023 when Polygon reduced its workforce by 20 during a reorganization phase. Marc Boiron, the CEO of Polygon Labs, expressed in a post on X, "The truth is, pursuing our goals often involves difficult decisions. Despite the challenges, the team and I agree that we need to act thoughtfully to maximize our chances of success."