Polygon Plans to Lay Off 20% of its Workforce
Polygon a scaling solution provider for the Ethereum blockchain was founded by three Indian entrepreneurs. Polygon, an Indian blockchain startup, intends to lay off 20% of its workforce. Sandeep Nailwal, a co-founder of Polygon, recently mentioned the layoffs in a blog post.
The company has decided to proceed with the 20% layoff, which will result in the firing of approximately 100 employees as part of a restructuring process.
Approximately 100 people have been fired across all teams and positions in the affected workforce. The announcement comes as the industry struggles due to a prolonged downturn in the cryptocurrency market.
Polygon raised nearly US$450 million in February of last year when it issued MATIC to 40 venture capitalists, including Sequoia Capital, SoftBank Vision Fund II, Elevation Capital, Tiger Global Accel Partners, and Steadview Capital. Polygon also stated that its treasury has remained relatively healthy, with a balance of US$250 million and more than 1.9 million MATIC, the native cryptocurrency of Polygon.
Employees who have lost their jobs are entitled to three months of severance pay. Severance pay is not based on the level of the employee. To comply with the severance pay policy, the company will pay close attention to the length of employment.
Polygon is one of the companies that has laid off employees in the last year to better manage costs.
The company recently announced a plan to restructure corporate entities, which would group all employees under the umbrella of Polygon Labs. The restructuring was carried out to assist the company in better streamlining and organizing its operations.
Polygon was founded by Sandeep Nailwal, Jayanti Kanani, and Anurag Arjun. In 2021, the company will receive funding from US-based billionaire Mark Cuban. Polygon’s co-founders also included Mihailo Bjelic from Serbia. MATIC was launched through Binance’s initial exchange offering, which is how the company raised more than US$5 million. Other cryptocurrency companies have been forced to reduce their workforce in recent months; Gemini reduced its workforce by 10% at the start of the year.
Coinbase Global also laid off 950 employees this year as part of its restructuring plan.