When it consolidated its business units, Polygon Labs reduced 20% of its workforce, or about 100 people.
20% of the workforce at Polygon Labs, a business that specialises in developing interactive content for layer-2 blockchain, were recently let go as part of a reorganisation plan.
The business, originally known as Matic Network, offers an Ethereum scaling solution that makes network transactions quicker and less expensive.
Refocusing the company’s efforts and enhancing its long-term viability are the goals of the reorganisation.
What caused Polygon Labs to fire 20% of its staff?
Layer-2 scaling is a feature of Polygon Labs, formerly known as Matic Network, for Ethereum. It is intended to make Ethereum network transactions quicker and more affordable.
The business has a distinctive strategy that allows it to offer a smooth and convenient experience for users and developers.
In addition, Polygon Labs is an open-source platform that accepts contributions from anybody.
Sandeep Nailwal, Anurag Arjun, and Jaynti Kanani launched the business in 2017. It was once just a side project, but the blockchain community immediately embraced it.
The business acquired $5 million in investment in 2019 from Binance Labs. The business changed its name to Polygon Labs in 2020 and kept growing its product line.
The necessity to refocus its efforts was mentioned by Polygon Labs as justification for the restructure. The business is working to increase its long-term viability and make sure it can keep offering its customers value.
Although the choice to fire 20% of the personnel was not made lightly, it was important to improve business processes and save expenses.
The business announced the restructure in a post, saying:
“Our team members’ efforts have helped us become who we are today, and we appreciate them and wish them well in their future pursuits. We are still dedicated to realising our vision of a blockchain industry that is more decentralised and scalable, and we think that this restructure will make that vision a reality.
What does this imply for the future of the business?
Polygon Labs’ restructure is a part of a wider trend in the blockchain sector. Many businesses want to increase their sustainability and put an emphasis on long-term growth.
Although firing employees is never a simple choice, it could be required to keep the business running smoothly and continue to provide customers value.
Restructuring Polygon Labs may result in a leaner, more targeted business. The business could be better able to serve the requirements of its consumers and continue to develop in the blockchain sector by cutting expenses and refocusing efforts.
It is important to remember that the company’s choice to reorganise does not imply that anything is wrong with its technology or product offerings.
The restructure may just be a strategy to guarantee that Polygon Labs can continue to offer an important service to the blockchain community, which it has a history of doing. This is a good thing for the industry as a whole since it will lead to more ethical and sustainable businesses.
In recent years, the blockchain sector has experienced substantial expansion, and several businesses have formed to offer a variety of services.
Yet not all of these businesses will be able to endure over time.
As the market develops, we should anticipate greater restructuring and consolidation as businesses concentrate on what they do well and cut wasteful expenses.
The reorganisation of Polygon Labs serves as a reminder of the difficulties that blockchain businesses must overcome. The technology is promising, but it is still in its infancy, and there are still a lot of obstacles that businesses must get through in order to flourish.
They include the need to constantly develop and enhance their products, regulatory hurdles, and rivalry from other businesses.
The reorganisation of Polygon Labs is evidence of the blockchain industry’s development. We may anticipate increased innovation and technological advancements as businesses put more of an emphasis on long-term growth and sustainability. Everyone participating in the sector, from developers to users, will gain from this.
Finally, Polygon Labs’ choice to reorganise and let go of 20% of its workforce is an essential step for ensuring its long-term viability.
The company’s track record of offering a crucial service to the blockchain community is well established, so the restructure may just be a strategy to guarantee that it can go on doing so.
The action is a part of a bigger trend in the blockchain sector where businesses are concentrating on long-term sustainability and growth.
We may anticipate additional restructuring and consolidation as the sector develops, which will result in businesses that are more sustainable and accountable. The blockchain sector has a promising future, and Polygon Labs is ideally positioned to participate in it.