Matter Labs, the primary developer of the Ethereum layer-2 solution ZKsync, recently made the decision to downsize its workforce by 16% as part of a significant organizational restructuring. This move comes as the company aims to better align its team with the evolving technology and support requirements of ZKsync developers.
CEO Alex Gluchowski explained in a statement on X that the restructuring is necessary to adapt to new technological demands and the evolving role of the company within the decentralized ecosystem. The decision to reduce the workforce was made following a thorough organizational planning exercise, which highlighted the need to realign talent and roles with the company’s current needs.
The demand for ZKsync’s technology has been on the rise, especially with the recent launch of the Elastic Chain. Despite the layoffs, Gluchowski reassured stakeholders that Matter Labs remains financially stable. The company is focused on strategic hiring practices and remains committed to its mission of advancing crypto adoption.
Employees affected by the layoffs will receive a comprehensive exit package, which includes three months of base salary, continued healthcare benefits, and career support. Matter Labs will also provide assistance with immigration issues for four months and offer career placement support to impacted staff.
Earlier this year, Matter Labs faced opposition from the zero-knowledge community after attempting to trademark the term “ZK.” Following criticism from prominent ZK researchers, the company decided to withdraw its trademark applications, acknowledging that zero-knowledge proofs should remain a public good and not be monopolized by any single entity.
Despite the recent restructuring, Matter Labs remains optimistic about its future prospects. The company sees strong technological demand and opportunities for continued growth in the crypto space.