Matter Labs has reduced its workforce by 16% as demand for its Ethereum Layer 2 protocol, ZKsync Era, significantly declines in 2024.
The number of active addresses on ZKsync has decreased sharply, from over 455,000 in April to about 92,620 by September.
Faced with changing market needs, Matter Labs is shifting its focus from the ZKsync Era to developing ZK Chains and adapting to new demands.
Matter Labs, a German blockchain company and the Ethereum Layer 2 ZKsync builder has reduced 16% of its workforce. The company claims that the decrease is due to emerging new markets and changes in its needs.
Shift in Market Environment and Business Needs
According to the company’s CEO, Alex Gluchowski, the market setting has shifted this year. The change in demand pattern for ZKsync Era, a Layer 2 protocol, is forcing the company to make strategic changes and bring changes to its team.
Many teams emerging in the ZKsync Era need tech and support they did not need before. Thus, Matter Labs is redirecting its efforts to meet this demand and concentrate on the demands towards ZK Chains.
In January and February of this year, ZKsync processed more transactions than any other Layer 2 Ethereum network powered by ZK, with the daily average of transactions peaking at a seven-day moving average.
The platform reported lower numbers in recent months. As per the information, ZKsync has lost significant transactions and decreased from 455,000 Active Addresses in April to 92,620 in May.
Comprehensive Support for Departing Employees
Management at Matter Labs has clearly stated that the restructuring that has gone around has nothing to do with the employee’s performance. Gluchowski thanked the outgoing team members and said the firm would continue assisting the affected employees.
Also, it has implemented a flexible policy of severance pay, which consists of three months of base pay, four months of health care, and career support services.
https://twitter.com/gluk64/status/1830968752210375030
Furthermore, Matter Labs provides full vesting through the termination date and does not include a cliff for employees who have worked for at least six months in the firm. The company will also continue offering immigration services for the following four months and let employees keep laptops provided by the company.
Strategic Focus on Future Growth Opportunities
Additionally, restructuring correlates with Matter Labs’ vision to preserve its flexibility and efficiency in the context of the historically evolving crypto industry. Recently, the company released the Elastic Chain and ZK Nation, saying that, according to Gluchowski, it is the time to reflect on the company’s strategy, objectives, and workforce.
When discussing the reorganization, the CEO pointed out that it aims to ensure the right roles and people are in place for the future. Gluchowski also noted that Matter Labs will continue to scale and hire the right staff to prepare for the platform’s next growth phase.
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