Polygon Announces Workforce Reduction Amid Restructuring
Polygon recently revealed its restructuring plans, leading to a significant reduction in its workforce. The decision was communicated by CEO Marc Boiron through a blog post on February 1st, where he disclosed the layoff of 19% of the company’s employees, totaling 60 individuals.
Boiron explained that this strategic move aims to optimize operations for improved performance, highlighting the necessity for a more agile and ownership-driven team.
Management Comments on Workforce Changes
In response to the workforce reduction, Boiron assured affected employees of a two-month severance package and continued health benefits through February. Additionally, the company plans to retroactively increase total compensation by at least 15% for existing staff from January 1, 2024, with new employees receiving a 5% increase.
Polygon’s founder, Sandeep Nailwal, expressed on Twitter that saying goodbye to friends and colleagues was a painful but necessary step to realign Polygon Labs with its ‘underdog’ roots, striving for a more streamlined and mission-focused organization.
The strategic changes include the spin-off of Polygon Ventures, the future establishment of PolygonID as a separate entity, and the departure of 60 teammates from Polygon Labs. Following these changes, Polygon Labs will now operate with approximately 220 team members.
Impact on Polygon’s State
These developments could potentially influence sentiment around Polygon. Despite recent growth in the number of daily active addresses on the network, there is a noticeable discrepancy between daily transactions and protocol activity.
According to AMBCrypto’s analysis of Artemis’ data, the number of transactions on the network has declined from 16.3 million to 3.51 million over the last 3 months. Consequently, overall fees and revenue generated by Polygon have also decreased, with daily revenue falling from $171,000 to $16,000 over the same period.
Despite the recent downturn, initiatives like the zkEVM and other developments may help Polygon regain momentum and favor in the market.
