Matter Labs, the lead developer of Ethereum’s layer 2 ZKsync solution, has announced that it will reduce its workforce by 16% due to a major organizational restructuring.
The company will scale back these functions to better align with evolving technology and support needs of ZKsync (ZKSY) developers.
in statement Speaking about X, CEO Alex Glukhovsky explained that the restructuring was driven by the need to adapt to new technological demands and the company’s changing role within the decentralized ecosystem. “We went through a major planning exercise for the organization, and it became clear that the talent and roles we have today do not fully align with our needs,” Glukhovsky said.
This decision comes on the heels of a significant increase in demand for ZKsync technology, including the recent launch of Elastic Chain.
Despite the layoffs, Gluchowski stressed that Matter Labs remains financially strong, focusing on strategic hiring and maintaining its mission to promote crypto adoption.
Exit packages and optimism
Affected employees will receive a comprehensive exit package, including three months of base salary, continued health care benefits, and career support. In addition, the company will assist with immigration issues for four months and provide affected employees with career placement support.
Earlier this year, Matter Labs withdrew its trademark application for the term “ZK” after strong opposition from the zero-knowledge community, which argued that such innovations should remain a public good. The company decided to abandon its efforts after prominent ZK researchers criticized the move, arguing that zero-knowledge proofs should not be monopolized by any one entity.
The company remains optimistic about its future, citing strong demand for the technology and continued growth opportunities.
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