Matter Labs Reduces Team by 16%, Citing Evolving Business Needs
Matter Labs Reduces Team by 16%, Citing Evolving Business Needs
Author Hongji Feng Author Hongji Feng About Author Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),... Author Profile Share Copied Last updated: September 3, 2024 16:19 EDT
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Matter Labs announced a reduction of its workforce by 16% as part of a restructuring effort on September 3.
According to a social media post by CEO Alex Gluchowski, the decision follows an internal review that identified a mismatch between the company’s current roles and its evolving focus on supporting ZKsync Era and ZK Chains.
“Our market environment and business needs have changed significantly over the course of this year,” said Gluchowski. “We see that many teams building on ZKsync Era now require a different type of technology and support than they had previously.”
I just sent this message to the Matter Labs team:
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Today, I’m sharing the hardest change we had to make in the 6-year history of Matter Labs. We are restructuring the organization and parting ways with many amazing team members (~16% of the team). We’ve already reached out… — Alex G. (∎, ∆) (@gluk64) September 3, 2024
Matter Labs assessed its current team structure following the launch of the Elastic Chain and ZK Nation, finding that some existing roles and talent no longer align with its shifting needs. This evaluation led to a comprehensive review to ensure the organization remains focused on new priorities.
Gluchowski emphasized that the layoffs were not performance-related and outlined a comprehensive exit package for the affected employees, including salary continuation, healthcare coverage, and career support.
The exit package includes three months of base salary, four months of healthcare coverage, personalized career services, and four months of continued immigration assistance.
“I want to end by expressing my deep gratitude to every team member, both those moving on and continuing with us, for your invaluable contributions to our journey,” said the CEO. “Your efforts have shaped Matter Labs into what it is today: a transformative force advancing freedom for everyone in the world.”
Recently, RDX Works, the creators of the Radix DeFi platform, announced to reduce 15% of its workforce to cut costs.
RDX Works CEO Piers Ridyard stated that the recent layoffs are part of a larger effort to restructure the organization, focusing on streamlining operations and adjusting to shifting market conditions.
Despite the workforce reduction, the CEO emphasized that key projects, including Flash Liquidity, the Cassandra test network, and multifactor account persona control and recovery (MFA), will continue as planned.