Polygon announced on Tuesday that it would be cutting down 20% of its workforce as part of efforts towards unifying its diversified businesses under one unit. The news prompted a 6.5% drop in the trading price of its layer-two token, $MATIC, down to $1.29.
Following the persisting crypto market downturn that has seen top blockchain projects slash a significant portion of its workforce, Polygon assured its community that prevailing layoffs in no way fuel the decision.
Polygon pledged to offer all affected staff three months’ severance compensation, irrespective of their qualifications.
With the announcement, Polygon joins a list of companies like Blackrock, Coinbase, Genesis Trading, Crypto.com, etc., that have seen massive staff reductions over the last twelve months.
Over 50% of crypto total market capitalization totalling>$1 trillion has been wiped off since the current market downturn, which many attributed to external economic factors.
Sandeep Nailwal, in a recent tweet, allayed fears of a possible cash crunch, adding that the L2 giant still has $250 million and over 1.9 billion MATIC in its treasury. Sandeep showed encomiums on exiting staff describing their role as “historic” towards the development of Polygon technology and its ecosystem “as a globally recognized blockchain.”
The popular L2 company has been on a prosperous adoption roll, recently onboarding top-tier mainstream companies like Instagram, Disney, eBay, Stripe, Adobe, Nike, Starbucks, Reddit, Adidas, Meta, Robinhood, and a growing list of others. Unarguably India’s most successful blockchain company, Polygon’s mission to ease access to Ethereum has remained highly successful with an array of scaling solutions, including zero-knowledge EVM, Polygon Miden, Polygon Supernets, and Nightfall, amongst others.
According to World Bank forecasts, recessionary trends in the US and across some European countries have continued to prop up. JP Morgan, which became the first bank to open a branch in the Metaverse, had predicted a contraction of the US economy toward the later quarters of the year as a result of incessant Fed rate hikes. The banking giant itself had used Polygon’s blockchain infrastructure last November for the creation of its first-ever live blockchain-based cross-border transaction and was recently caught in the Web of layoffs after it dismissed hundreds of workers from its payroll.
CEO Sandeep’s mission is to make Polygon a top 3 global blockchain. Hopefully, layoffs might help, however odd.