The CEO of Polygon Labs, Marc Boiron, explained that these layoffs are aimed at optimizing the company's team. The reduction in workforce by 19% is intended to accelerate the growth and implementation of Polygon Labs developers' ideas and to avoid unnecessary bureaucracy. Boiron also emphasized that the Polygon Labs team expanded significantly during the last growth period, which led to a dilution of the company's focus.

Employees who were laid off as a result of the downsizing will receive compensation equal to two months' salary and medical insurance. In addition, starting from January 1, 2024, Polygon Labs has increased the base salary of its employees by at least 15%, and new employees will receive a 5% bonus.

Polygon Ventures, which separated from Polygon Labs last year, will operate as an independent company with 10 employees. Marc Boiron noted that Polygon Ventures is working on creating a new fund, making their operation as a separate organization more practical. Additionally, in the coming months, Polygon ID, where 33 employees work, will also begin to function as a standalone division.

Recently, lawyers from Polygon Labs presented a regulatory framework for governing DeFi protocols, suggesting that their activities should be overseen by the Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) of the U.S. Department of the Treasury.