Matter Labs, the developer behind Ethereum layer 2 scaling solution ZKsync, has announced a 16% reduction in its workforce, affecting 24 employees. This is the first instance of layoffs since the company's inception in 2018.
Reasons for the Cut
The workforce reduction at Matter Labs is driven by the need to align current talent with the company's needs in light of changing technological demands and an increasing role in the decentralized ecosystem. According to CEO Alex Gluchowski, an internal audit has revealed that the current talent pool does not fully meet the company's requirements. President Nana Murugesan has emphasized that the correct alignment of roles and people is crucial for the company's mission.
Employee Support Measures
To support the affected employees, Matter Labs will offer an extensive exit package, including three months of base salary, health insurance, and career support. The company will also assist with immigration issues.
Financial Stability
Alex Gluchowski has assured that Matter Labs remains financially stable and that the reduction is aimed at strengthening strategic hiring to further the company's mission of advancing cryptocurrency adoption. Matter Labs has raised $458 million in funding across four rounds. The recent launch of the Elastic Chain demonstrates the growing interest in ZKsync's technology. Earlier this year, the company withdrew trademark applications for ZK after community complaints, reaffirming its commitment to keeping such innovations a public good.
The workforce reduction is prompted by the need to adapt the company's talent strategy to its current needs and goals. Matter Labs remains confident in its financial stability and continues to pursue its mission of advancing cryptocurrency adoption.
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