Polygon Labs lays off 60 employees; CEO announces 15% increase in compensation

Polygon Labs CEO Marc Boiron announced the layoff of 60 employees, constituting roughly 19% of the team. Boiron said the decision is part of an effort to optimize the organization, aiming to create a more efficient, agile team with less bureaucracy.

Boiron, in a blog post, highlighted the need for a "surgical team" to expedite projects and achieve the highest potential, citing the rapid growth during the last bull market as a dilution of the team's desired qualities.

Providing severance packages

Boiron describes these layoffs as a difficult decision but a necessary step towards enhancing performance.

"When I started the role of CEO, I pledged to make you all the happiest employees in the world. While that goal will never cease to be my North Star, it pains me that I failed to make that happen for many of our teammates," he wrote in a blog post.

For the laid-off employees, Polygon Labs will provide two months of severance and health benefits through the end of February, where applicable. Additionally, It will help impacted employees find new opportunities.

Announcing increased compensation

Following the layoffs, Polygon Labs CEO announced a 15% increase in total compensation for the remaining employees, effective retroactively to January 1, 2024. 

The adjustment also includes a 5% increase for very recent hires. The company is also eliminating traditional geo-pay models to recognize the value of each employee, irrespective of location, as per the statement.

Strategic spin-offs

Polygon Ventures and Polygon ID, two teams within the organization, are being spun off. The 10-person Polygon Ventures team has rebranded to P2 Ventures, focusing on early-stage investments across web3, particularly within the Polygon ecosystem.

The 33-people Polygon ID team is set to spin off in the coming months, continuing its work on enabling users to prove their identity without exposing private information.

Focusing on growth

Despite the layoffs, Boiron remains optimistic about the future, highlighting the team's readiness to pursue the development of key software and the growing ecosystem around it.

He mentioned the creation of interconnected zero-knowledge networks and contracts, the strong community participation, and the attraction of web3 builders to the Polygon networks. 

Join our new WhatsApp Channel for the latest startup news updates