Polygon Labs CEO announces 19% workforce reduction (60 employees) to achieve greater agility and efficiency. Polygon Ventures (P2 Ventures) and Polygon ID become independent entities. Remaining team receives 15% compensation increase and new leveling system.
Creating a Surgical Team
Polygon Labs, the company behind the popular Ethereum scaling solution Polygon, announced a series of changes aimed at streamlining its operations and refocusing its mission. In a message to employees, CEO Marc Boiron revealed a 19% workforce reduction, impacting roughly 60 individuals. This decision, while difficult, was presented as necessary to create a “surgical team” with increased agility and efficiency. To soften the blow, impacted employees will receive severance packages and assistance with finding new opportunities.
According to Polygon’s CEO, Marc Boiron,
“For impacted team members, we are offering 2 months of severance and health benefits through the end of February in locations where we provide health benefits.”
Attracting and Retaining Global Talents
The restructuring extends beyond layoffs. Polygon Labs is taking steps to optimize its internal structure and reward remaining team members. All employees will receive a 15% compensation increase, retroactive to January 1st, 2024. Additionally, a revamped leveling system replaces the previous geo-based pay model, ensuring equal pay for equal work regardless of location. This move demonstrates a commitment to attracting and retaining top talent globally.
The restructuring also involves the spin-off of two previously internal divisions: Polygon Ventures and Polygon ID. Polygon Ventures, a 10-person team focused on early-stage web3 investments, has already transitioned to become the independent P2 Ventures. Similarly, the 33-person Polygon ID team, working on blockchain-based digital identity solutions, will soon become a separate entity. This strategic decision allows both ventures to operate with greater autonomy and pursue their specific goals more effectively.
Positioning for Greater Success
Despite the changes, Boiron remains confident in Polygon Labs’ mission and future prospects. He highlighted the growing adoption of Polygon CDK, their zero-knowledge proof development toolkit, and the vibrant Polygon community as evidence of their success. Moreover, he emphasized the strength of the remaining team, including their world-renowned zero-knowledge expertise.
While acknowledging the challenges inherent in any restructuring, Boiron believes these changes will ultimately position Polygon Labs for greater success. By focusing on core protocol development, attracting top talent, and fostering a more agile and efficient work environment, they aim to accelerate their mission of making the internet more equitable and accessible for everyone.
A Renewed Focus
This move by Polygon Labs reflects a broader trend in the tech industry, where companies are increasingly seeking to optimize their operations and adapt to changing market conditions. While the layoffs are undoubtedly unfortunate for the impacted individuals, the restructuring signals a renewed focus and determination from Polygon Labs as they navigate the dynamic web3 landscape.