- Polygon laid off a significant portion of its workforce.
- Network activity and monetization decreased.
Polygon (MATIC) announced its decision to lay off 60 employees, or 19%, in a blog post written by CEO Marc Boiron on February 1.
Boiron made it clear that the move was part of the company’s strategy to optimize operations for improved performance, emphasizing the need for a more agile, ownership-driven team.
Management’s Opinion
The CEO said affected employees will receive two months of severance pay and health benefits through February.
The company also plans to retroactively increase total salaries for existing employees by at least 15% starting January 1, 2024, with new employees receiving a 5% increase.
Company founder Sandeep Nailwal shared on Twitter that saying goodbye to friends and colleagues was a painful yet necessary step to return Polygon Labs to its ‘underdog’ roots and aim to be a more streamlined, mission-driven organization.
Strategic changes include the spinoff of Polygon Ventures, the future establishment of PolygonID as a separate entity, and the departure of 60 team members from Polygon Labs.
Following the spin-off and staff reductions, Polygon Labs now operates with approximately 220 team members.
Saying goodbye to a friend or colleague is always very painful, but this was a necessary step to return Polygon Labs to its ‘underdog’ roots. This allows us to be lighter, more agile, and more focused on the mission.
Our relentless focus is to build a planetary-scale blockchain network for:
— Sandeep Nailwal | sand deep. Polygon 💜 (@sandeepnailwal) February 1, 2024
state of polygon
New developments may affect sentiment towards Polygon.
In terms of activity, the number of daily active addresses on the network has been seen increasing over the past few months. However, there was a discrepancy between the number of daily transactions occurring on the network and the daily activity of the protocol.
AMBCrypto’s analysis of Artemis data found that over the past three months, the number of transactions on the network has decreased from 16.3 million to 3.51 million.
Source: Artemis
Read Polygon (MATIC) Price Prediction for 2024-25
This also reduced the overall fees and revenue generated by Polygon. Over the past three months, daily revenue generated by the network has decreased from $171,000 to $16,000.
Source: Artemis
Polygon hasn’t seen much activity, but initiatives like zkEVM and other developments could help turn the tide in their favor.