Matter Labs Workforce Reduction Happens for the First Time Since 2018

Key Points:

• Matter Labs, the developer of ZKsync, is laying off 16% of its workforce, affecting 24 employees.
• CEO Alex Gluchowski and President Nana Murugesan highlight the need for Matter Labs workforce reduction to match talent with the company’s mission.

Matter Labs, the core developer behind Ethereum layer 2 scaling solution ZKsync, will lay off 16% of its workforce, which equates to 24 employees. This will be considered the first time that employees would have to be let go by the company since the inception of 2018.

Read more: Select No New Matter Labs Trademark Applications Will Be Filed For ZK As Controversies Grow

Matter Labs Workforce Has Been Cut Off 16% Amid Major Restructuring

Matter Labs workforce reducetion comes hot on the heels of the company’s vigorous organizational restructuring, given the changing technological demand and ever-growing role in the decentralized ecosystem. According to Alex Gluchowski, chief executive officer at Matter Labs, an internal audit has recently identified that the current talent pool does not best meet the needs of the company.

Nana Murugesan, president of Matter Labs, who has outlined that the right people and their roles are supposed to correctly align for pursuit of the company’s mission.

“Organizational complexity has a tendency to accumulate over time […] We are ensuring that we have the right roles and people in place to be effective in accomplishing our mission,” Murugesan told Blockworks.

Matter Labs Seeks Assurance of Stability Amid Layoffs

In a move to comfort these, Gluchowski attempted to reassure stakeholders that Matter Labs was still financially stable and that the layoffs had taken place just to re-double on strategic hiring in pursuit of the company’s mission of advancing the adoption of cryptocurrencies. The Matter Labs workforce reduction will be provided with an extensive exit package, including three months of base salary, health insurance, and career support. Immigration issues will also be supported by the company.

The company has raised $458 million in funding across four rounds; the recent launch of the Elastic Chain is a show of the traction that’s building up for ZKsync’s technology. Earlier this year, the company pulled trademark applications for ZK after an uproar from the zero-knowledge community gesture cementing its commitment to keeping such innovations a public good.