Polygon Labs said Tuesday that it has laid off 100 employees, or nearly 20% of its jobs, after merging multiple business units earlier this year, making it the latest digital asset firm to execute layoffs.
Every employee will receive three months of severance pay, regardless of their level or tenure with the company, the company said in a blog post.
The decentralized platform that makes the digital coin ethereum more accessible was founded in 2017 as Matic and changed its name to Polygon in February 2021.
Last year, more than a trillion dollars in value disappeared from the cryptocurrency space as rising interest rates fueled recession fears. The crash led to high-profile bankruptcies of major industry players such as crypto hedge fund Three Arrows Capital and Celsius Network.
The biggest blow came after major exchange FTX filed for bankruptcy protection in November. Its rapid decline has sparked intense global regulatory scrutiny of how crypto firms hold funds and conduct business operations.
Last month, Digital Currency Group-owned Luno said it would lay off 35% of its workforce in response to a downturn in the cryptocurrency market.
