Polygon is an Ethereum scalability solution undergoing its third major restructuring

Polygon is a blockchain platform designed to make transactions faster and cheaper on top of Ethereum, and the company behind it, Polygon Labs, is currently undergoing significant structural changes. According to recent reports, the development team has reduced by 60 personnel across various departments, in conjunction with the integration of two strategic acquisitions worth over $250 million.

Coinme and Sequence Acquisition Integration Triggers Structural Adjustments

Polygon Labs recently acquired two leading payment companies: Coinme and Sequence. The reduction of 60 employees this week is part of a restructuring to integrate both teams into the main organization. These changes span across departments, not just one function, reflecting the company’s commitment to aligning its organizational structure with its new vision.

A Polygon Labs spokesperson denied the narrative that the company experienced a 30% cut in its total workforce. Instead, they emphasized that the number of employees remains stable at around 200 after the integration is completed. “This change aims to balance the addition from the latest acquisition, not to reduce the company’s size,” said the spokesperson.

Polygon Labs CEO, Marc Boiron, also acknowledged the restructuring through an official statement. He explained that these adjustments are necessary due to role overlaps arising from the merging of two acquisition teams. The two organizations are now combined to support Polygon’s mission to “move all money onchain.” Boiron expressed appreciation for team members leaving the company, while committing to actively support them during this transition.

Polygon Has Experienced Three Waves of Major Restructuring

The recent reduction of 60 personnel marks the third restructuring phase for Polygon Labs in the past three years. In early 2023, the company made a similar decision by cutting nearly 100 employees, representing about 20% of its workforce at that time. This reduction was part of consolidating several business units into a single integrated entity.

Shortly thereafter, in February 2024, Polygon Labs carried out a second wave of layoffs, cutting another 60 people, accounting for 19% of staff. The company described this as a strategic move to improve operational efficiency and overall performance. Now, this third reduction is undertaken in a different context—to optimize acquisition integration and strengthen focus on the digital payments sector.

Financial Foundation Remains Strong Despite Restructuring

Despite the workforce reduction, Polygon Labs maintains a strong financial position. The company is reported to have over $200 million in cash, and also holds more than 1.9 billion MATIC tokens, the native currency of the Polygon network. This healthy financial condition provides the company with flexibility to continue investing in technology development and market expansion.

Polygon is a blockchain infrastructure that uses a Proof-of-Stake consensus mechanism, enabling users to perform transactions at low cost and high speed. The MATIC token is used to pay transaction fees and can be staked to earn rewards. The platform was first launched in 2017 under the name Matic Network and began full operation in 2020.

With aggressive acquisition strategies and measured restructuring, Polygon Labs demonstrates its determination to become a major player in onchain payment solutions in the future blockchain era.