- Polygon laid off much of its workforce.
- Activity on the network and revenue generated decreased.
Polygon [MATIC]announced the decision to lay off 19% of its workforce, equivalent to 60 employees, in a blog post written by CEO Marc Boiron on February 1.
Boiron clarified that this move was part of the company’s strategy to optimize operations for better performance, emphasizing the need for a more flexible and owner-oriented team.
Comments from the board
The CEO stated that affected employees will receive two months’ severance and health benefits through February.
The company also plans to increase total compensation for existing staff by at least 15% retroactively from January 1, 2024, with new hires receiving a 5% increase.
Sandeep Nailwal, the company’s founder, shared on Twitter that saying goodbye to friends and colleagues was a painful but essential step in returning Polygon Labs to its “underdog” roots, with the goal of a more streamlined and mission-focused organization.
The strategic changes include the spin-off of Polygon Ventures, the future creation of PolygonID as a separate entity and the departure of 60 teammates from Polygon Labs.
Following the spin-off and workforce reduction, Polygon Labs will now operate with approximately 220 team members.
Saying goodbye to friends and colleagues is always very painful, but this was a necessary step to return Polygon Labs to its underdog roots. This makes us lighter, more agile and more mission-oriented.
Our relentless focus is building a planetary-scale blockchain network for…
—Sandeep Nailwal | sand deep. polygon ???? (@sandeepnailwal) February 1, 2024
State of polygon
The new developments may affect sentiment around Polygon.
In terms of activity, it could be seen that the number of daily active addresses on the network had grown in recent months. However, there was a discrepancy between the number of daily transactions on the network and the daily activity on the protocol.
AMBCrypto’s analysis of Artemis data showed that the number of transactions on the network had fallen from 16.3 million to 3.51 million over the past three months.
Source: Artemis
Read Polygon [MATIC] Price forecast 2024-25
As a result, the overall fees and revenue generated by Polygon also decreased. Over the past three months, daily revenue generated by the network has dropped from $171,000 to $16,000.
Source: Artemis
While Polygon hasn’t seen much activity yet, initiatives like the zkEVM and other developments could help turn the tide in its favor.