zkSync Parent Company Lays Off 16% of Its Workforce: Rise in Competition in the Ethereum L2 Scene

One of the most notable developments recently has been the layoffs carried out by the parent company of #zksync . The company announced that it has laid off approximately 16% of its workforce.

This move aims to increase competition in the #Ethereum✅ Layer 2 (L2) ecosystem and is considered an important strategic move in the fight against other protocols in the sector.

1. Background of the Layoff Decision

$ZK Sync is an L2 solution developed on the Ethereum network with the aim of scalability and reducing transaction costs.

The company's layoff of a significant portion of its workforce is considered a reflection of the changing dynamics and increasing competition in the sector.

Such decisions are usually aimed at protecting the financial health of the company, increasing efficiency, or signaling a change in strategic direction.