Matter Labs to cut 16% of workforce amid organizational restructuring

Matter Labs, the key developer behind the Ethereum layer-2 solution ZKsync, has announced it will reduce its workforce by 16% due to a major organizational restructuring. 

The company will cut these positions to better align with the evolving technology and support needs of ZKsync (ZKSY) developers.

In a statement on X, CEO Alex Gluchowski explained that the restructuring is driven by the need to adapt to new technological demands and the company’s changing role within the decentralized ecosystem. “We went through a large org planning exercise, and it became clear that the talent and roles we have today do not perfectly match our needs,” Gluchowski stated.

The decision follows a significant increase in demand for ZKsync’s technology, including the recent launch of the Elastic Chain.

Despite the layoffs, Gluchowski assured that Matter Labs remains financially robust, focusing on strategic hiring and maintaining its mission to advance crypto adoption.

Exit packages and optimism

The affected employees will receive a comprehensive exit package, including three months of base salary, continued healthcare benefits, and career support. Additionally, the company will assist with immigration issues for four months and provide impacted staff with career placement support.

Earlier this year, Matter Labs withdrew its trademark applications for the term “ZK” following strong opposition from the zero-knowledge community, which argued that such innovations should remain a public good. The company decided to drop its efforts after prominent ZK researchers criticized the move, emphasizing that zero-knowledge proofs should not be monopolized by any entity.

The company remains optimistic about its future, citing strong technological demand and continued growth opportunities.