Benzinga - Blockchain company Polygon has announced layoffs of about 100 employees, or 20% of its workforce, impacting multiple teams.
The company stated that the move comes as it consolidates its business units under Polygon Labs, after a period of “exponential growth.”
Polygon said that it has a treasury balance of over $250 million and more than 1.9 billion MATIC (CRYPTO: MATIC) tokens, and has crystallized its strategy for the next few years to help drive mass adoption of Web3 by scaling Ethereum (CRYPTO: ETH).
In a statement, the company said that laying off employees was "a painfully hard decision, but a necessary step in our journey."
Polygon co-founders, Jaynti Kanani and Sandeep Nailwal, expressed their gratitude to the departing employees, who played a crucial role in building the company's technology and ecosystem.
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"These individuals will always be a part of the 0xPolygon community and we sincerely thank each and every one of them," Kanani and Nailwal said in a joint statement.
Each impacted employee will receive three months of severance pay, regardless of their level or tenure at Polygon Labs.
Over the past few months, there has been a decline in crypto market sentiment and the overall economic condition.
The downfall of FTX (CRYPTO: FTT) contributed to the fall of cryptocurrency prices and led to renewed calls for regulatory supervision.
Meanwhile, governments worldwide have been raising interest rates to fight inflation.
The job cuts, which initially hit the crypto sector in June 2021, have now spread across major tech companies and continue to impact the crypto industry in recent weeks.
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