Polygon Labs Cuts 19% of Its Team, Offers Two Months’ Severance Pay

• ByStartupStory     |    February 2, 2024

Polygon Labs, a division of Layer-2 protocol Polygon, has announced plans to lay off approximately 60 employees, constituting about 19% of its workforce. The announcement was made through a blog post by Marc Boiron, CEO of Polygon Labs. Boiron stated that affected employees would receive around two months of severance pay and continued health benefits.

In the blog post, Boiron acknowledged the difficulty of informing employees about the decision and assured that the company would personally speak to each affected team member. He expressed optimism about the company’s future, citing the ability of a smaller team to expedite projects and achieve their highest potential.

Additionally, Polygon Labs revealed its decision to spin off two entities—Polygon Ventures and PolygonID, a platform for decentralized identities using zero-knowledge proofs—as standalone companies.

Co-founder Sandeep Nailwal commented on the changes, stating, “Saying goodbye to friends and colleagues is always very painful, but this was a necessary step to take Polygon Labs back to its ‘underdog’ roots,” in a post on X (formerly Twitter).

Furthermore, Polygon Labs announced a 15% salary increase for remaining employees. This news follows the departure of Co-founder Jaynti Kanani in October last year. Polygon Labs had previously secured $450 million in a Series A funding round led by Peak XV Partners (formerly Sequoia Capital India) in 2022.

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