Polygon Labs lays off 60 employees as part of a $250 million restructuring

After completing the strategic acquisitions of Coinme and Sequence for $250 million, Polygon Labs conducted a major internal restructuring. The company laid off 60 employees from various departments as part of a planned staff optimization during the integration of new teams. This is already the third major round of layoffs in the company’s history over the past three years, indicating instability in its management strategy.

Shift to the Payment Segment and Reasons for Reorganization

Polygon Labs, the developer of a scaling solution for the Ethereum network, is focusing its activities on blockchain payments. A company representative stated that the recent personnel changes are not so much about reducing staff as they are about eliminating duplicate positions that arose from the merger of Coinme and Sequence teams. According to an official, these measures aim to keep the overall staff count around 200 employees while expanding the company’s operations.

CEO Mark Boaron confirmed the changes in a public statement, emphasizing that they are specifically related to the integration of new structures. Both acquired companies are strategically important for Polygon’s mission — “to move all money onto the blockchain” and to facilitate mass adoption of cryptographic payments.

Layoff History: The Third Round in Three Years

Events in 2026 continue the concerning trend of optimization at Polygon Labs. In early 2023, the company conducted its first major round of layoffs, cutting approximately 100 employees, which was about 20% of its total staff at the time. The reason was the consolidation of several separate business units into a single organizational structure.

The second wave occurred in February 2024, when Polygon Labs reduced 60 people (19% of the staff), citing the need to improve operational efficiency and productivity. The current layoffs, valued at $250 million, represent a continuation of this cycle of personnel restructuring, indicating ongoing changes in the company’s strategy.

Integration Process and Role of New Acquisitions

The integration of Coinme and Sequence teams is a key component of Polygon Labs’ strategy to capture the payments segment. Both acquisitions were purchased for a total investment of $250 million to strengthen the company’s position in cryptographic payments and expand its ecosystem.

Internal personnel shifts reflect the complexity of merging two teams with different structures. According to sources close to the company, the changes affected almost all departments and functions, not just specific areas.

Financial Position and Resources

Despite the layoffs, Polygon Labs remains financially stable. The company has over $200 million in reserves and owns 1.9 billion MATIC tokens — the native cryptocurrency of the Polygon network. These resources provide the company with a sufficient buffer to implement its long-term development strategy.

The MATIC token is used to pay transaction fees on the Polygon network and can be staked for rewards. The strong asset position indicates that personnel optimizations are more strategic than financially necessary.

Market Reaction and Outlook

As of the latest reports, the price of the MATIC token has decreased by approximately 6% over 24 hours, which may reflect market reaction to the layoffs news. At the same time, the broader cryptocurrency market, tracked by the CoinDesk20 index, showed a more moderate decline of about 1% over the same period.

Polygon’s Technological Core

Polygon is a scaling solution for Ethereum, providing faster and more cost-effective transactions compared to the main network. The system uses a Proof-of-Stake consensus algorithm, ensuring energy efficiency and network security.

Initially launched in 2017 under the name Matic Network by a group of Ethereum developers, the network became active and fully operational by 2020. Today, Polygon is positioned as one of the most promising solutions for expanding Ethereum’s capabilities and facilitating mass adoption of blockchain payments, aligning with Polygon Labs’ current strategic shift toward the payment segment.