Polygon Labs Cuts Employees, Community Worried About Budget
Polygon Labs cut 20% of its workforce, citing business group convergence. The consolidation would give 100 workers a three-month severance package.
As the crypto cold worsened, large businesses like Coinbase laid off personnel.
In addition to announcing a 20% employee reduction, Polygon Labs reported investment on ecosystem projects.
Polygon Laboratories announced a 20% personnel reduction, citing the convergence of business groups. About 100 workers would be affected, and as part of the consolidation, they would get a three-month severance compensation. The crypto community expressed anxiety, however, regarding its treasury, which the business claimed had a balance of $250 million in addition to MATIC assets.
Large sums of money were spent on the Polygon Labs' ecosystem projects, the company said. The news of the layoffs at Polygon caused the MATIC price to fall as much as 6%.
Cutting Employees at Polygon Labs
With major players like Coinbase laying off staff over the past several months as the crypto winter only got worse, the cryptocurrency market saw a wave of layoffs. In this context, concerns were expressed by the cryptocurrency community regarding the Polygon team's spending in the wake of the layoffs. Despite having a healthy balance sheet, the Polygon founders stated in a statement that the choice to lay off employees was deliberate. The team declared that bringing all teams under Polygon Labs together was a top priority in order to promote growth.
The statement also stated that they hold a balance of more than $250 million and more than $1.9 billion MATIC. The $450 million it raised at the beginning of 2022, however, piqued the interest of the cryptocurrency community. In response, Ryan Wyatt, the president of Polygon Labs, stated that the ecosystem initiatives and ecosystem fund accounted for the majority of the $200 million.
Polygon (MATIC) has seen a substantial increase in customer interest over the past year, as seen by its $12.22 billion market cap. There were also a number of collaborations between well-known corporations and members of the Polygon ecosystem. In a recent development, a streaming app on Polygon signed a contract for access to photos and videos with the electronics behemoth Samsung. According to CoinGabbar, the rank 9 cryptocurrency is currently trading at $1.40, down 6.20% in the previous day.
