- Matter Labs reduces its workforce by 16% in response to market and business changes.
- The company promotes decentralization and operational efficiency.
Matter Labs, the key developer of Ethereum’s layer 2 scaling technology ZKsync, is laying off 24 employees, or 16% of its staff. This is the first time the organization has had to make such reductions since it was founded in 2018.
Restructuring to Meet Evolving Needs
The employment reduction is part of a larger organizational reform aimed at better aligning the company’s talent with changing technological demands. According to CEO Alex Gluchowski, an internal assessment indicated that the current team structure was not fully aligned with the company’s objectives. Nana Murugesan, President of Matter Labs, underlined the importance of role alignment in achieving the company’s goal.
Gluchowski stated that a thorough organizational assessment indicated a mismatch between current responsibilities and the company’s requirements. As a result, Matter Labs is restructuring to ensure agility and efficacy, particularly with new breakthroughs such as ZK Nation and the Elastic Chain.
Despite the layoffs, Gluchowski assured stakeholders that the company is financially stable. The layoffs are meant to refocus the company on strategic hiring and driving cryptocurrency adoption. Employees will receive a comprehensive exit package that includes three months’ income, health insurance, career help, and immigration aid.
Matter Labs has raised $458 million in funding over four rounds and recently launched the Elastic Chain, demonstrating the tremendous interest in ZKsync’s technology. Earlier this year, the company withdrew ZKsync trademark filings due to community protest, confirming its commitment to preserving ideas in the public domain.
Despite the personnel losses, the ZK token price has stayed relatively constant, falling by 3.37% in the last 24 hours, echoing a broader market trend that has seen Ethereum (ETH), Optimism’s OP, and Arbitrum’s ARB all fall.
The restructuring intends to streamline operations and maintain Matter Labs ability to satisfy the demands of the decentralized ecosystem while furthering its purpose in the cryptocurrency space.
