Polygon Labs lays off 19% of team after 'rapid growth' during crypto's bull run

Polygon MATIC -1.58% Labs is laying off 19% of staff, the organization's CEO Marc Boiron announced in a post to X on Thursday.

"We are on a mission to fundamentally change the internet so that everyone in the world is empowered to equitably access its value. Building the infrastructure to make that happen is no easy feat," Boiron said in his post . "Regrettably, the team’s rapid growth in the last bull market diluted qualities that enable us to execute in this manner. We must return to those qualities."

Polygon Labs' decision to dismiss "60 teammates" follows several other companies announcing layoffs during last year's downturn. In 2023, high-profile crypto companies like Coinbase, Binance and OpenSea all announced layoffs. Roughly one year ago , Polygon Labs also cut 20% of staff.

Boiron also said Polygon Labs is "implementing a 15% increase in everyone's total compensation and eliminating traditional geo-pay models," while also suggesting the announced layoffs are not based on "financial reasons."

Layoffs follow recent announcements

Recent developments at Polygon Labs include plans to release a new solution called aggregation layer (or AggLayer), which aims to connect blockchains with zero knowledge proofs. The company also announced a collaboration with Fox Corporation to launch a blockchain-based platform called Verify which will negotiate content licensing deals with AI firms.

Boiron was promoted to CEO of Polygon Labs after previously serving as its chief legal officer. In 2022, Polygon Labs raised about $450 million through a private token sale. Sequoia Capital India led Polygon's fundraise, with more than 40 other investors participating, including SoftBank Vision Fund 2 and Tiger Global.

MATIC, which once hit a high of about $2.50, was trading at $0.80 as of 10:37 a.m. ET, according to The Block's Price Page .