Polygon Labs cuts 19% of staff, increases compensation for remaining team

Polygon Labs’ CEO announced the departure of 60 staff members, representing 19% of its workforce.

The cuts are part of a strategic adjustment aimed at bolstering performance efficiency rather than being driven by financial necessity. In addition, the announcement highlighted the evolution of Polygon Ventures into P2 Ventures following its separation from Polygon Labs at the end of 2023. Additionally, the Polygon ID division is set to become an autonomous entity in the near future.

In the statement, Polygon CEO Marc Boiron emphasized that the downsizing was enacted not out of financial necessity but to streamline operations for better performance.

Boiron also addressed the immediate impact on the affected employees, noting that while the news was delivered abruptly, personal communication would follow to offer explanations, answer questions, and extend thanks for their service. The company has committed to providing two months of severance pay and continuing health benefits until the end of February for those in applicable locations.

Polygon Labs has initiated a support network, as impacted staff can join a directory, sharing professional information with a network that includes web3 project recruiters, venture capital talent partners, and hiring managers.

In further announcements, Boiron shared positive developments for the remaining team members. Starting retroactively on Jan. 1, all employees will see at least a 15% increase in their total compensation, which includes base salary and annual MATIC payments, with recent hires receiving a 5% raise.

Additionally, a new leveling system will be introduced, and traditional geographic-based pay models will be abolished to recognize the value of each team member equally and enhance the company’s appeal to international talent.