Cryptocurrency service company Polygon Labs announced termination of employment, after merging several divisions in early 2023. Polygon Labs laid off 100 employees or nearly 20 percent of the total employees. The layoff decision was taken because the company was experiencing a crisis due to turmoil in the crypto asset industry. Global crypto asset capitalization will fall by US$1 trillion in 2022 due to rising interest rates and fears of a global recession.
The drop in market capitalization led to major bankruptcies of major industry players such as crypto hedge fund Three Arrows Capital and Celsius Network. In fact, the biggest impact came after the FTX exchange declared bankruptcy in November 2022, triggering intense global regulatory scrutiny of how crypto companies deposit funds and conduct business operations. Polygon will provide severance pay to employees affected by layoffs worth three times their salary, regardless of their position or length of service at the company.
This decentralized platform that makes Ethereum digital coins more accessible was founded in 2017 under the name Matic. The company then changed its name to Polygon in February 2021. Polygon’s crypto layoff decision extended a series of business pressures in the midst of a pandemic which led to employee reductions. Meanwhile, crypto loan company Genesis Trading, part of the Digital Currency Group (DGC) has laid off 30 percent of the total employees.
