Ethereum Layer-2 Projects Polygon, Immutable Lay Off Staff

Ethereum scaling project Polygon is cutting staff about one year after raising $450 million in a token sale led by Sequoia India

article-image, modified by Blockworks


Ethereum Layer-2 project Polygon is letting go of some of its staff after merging multiple business units.

In a blog published Tuesday, Polygon’s founders and president said they would lay off 20% of workers and cut 100 positions. All affected employees will receive three months of severance pay.

“This was a painfully hard decision, but a necessary step in our journey,” they said.  

Last month, Polygon announced a corporate restructuring that combined all staff under “Polygon Labs.” 

Polygon’s native token MATIC is among the 10 largest cryptocurrencies by market capitalization. MATIC sank 6.5% following the layoff announcement.

The token had been the best performer among the top 20 cryptocurrencies over the preceding month, having gained 48%.

Around one year ago, Polygon raised $450 million in venture capital funding in a private token sale led by Sequoia India. Now, the team says its treasury remains “healthy,” with a balance of $250 million and over 1.9 billion MATIC ($2.53 billion).

Separately on Wednesday, Australian startup Immutable, creator of the NFT-focused Ethereum Layer-2 network Immutable X, disclosed it had slashed 11% of its staff. 

Immutable cited a dearth in cash reserves and a push to redirect resources for the cuts, the Sydney Morning Herald reported, noting that it would include shaking up business units.

It also plans to transfer responsibility of some aspects of game development to external partners so it can focus on its crypto and Web3 components.

A spokesperson called the reporting, “a false attribution,” and told Blockworks that “Immutable did not cite low cash as the reason for this strategic move in February.”

Last year, the firm laid off 6% of its workforce, mostly affecting developers who worked on NFT-centric game Gods Unchained. 

Genesis,, and ConsenSys are among other crypto companies that recently reduced their workforces.

Updated March 8, 2023 at 5:33 am ET: Added a comment from an Immutable spokesperson.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png


With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.


Trump insiders say he will dismantle the anti-crypto army within an hour of taking office, but the campaign has been quiet about how it plans to do so


Plus, Solana set a record for weekly unique active addresses on the network last week


Launching cryptocurrencies the old fashioned way may soon make a return


Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug


NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.