ZKsync developer Matter Labs lays off 16% of its workforce

• Matter Labs has laid off 24 workers, over 16% of its workforce, amid market adjustments.
• The corporate is shifting focus from general-purpose scaling to area of interest purposes.
• Regardless of layoffs, Matter Labs continues hiring for important engineering and enterprise roles.

Matter Labs, the corporate behind the Ethereum scaling community ZKsync, has introduced the layoff of over 16% of its workforce, affecting 24 workers.

The announcement, made on September 3, 2024, by Matter Labs’ co-founder and CEO Alex Gluchowski, marks a major shift for the corporate because it navigates the more and more aggressive panorama of Ethereum layer-2 scaling options.

Matter Labs restructuring amid market challenges

The layoffs come as Matter Labs re-evaluates its technique within the face of adjusting market circumstances and evolving enterprise wants. It follows a big organizational planning train that exposed a mismatch between the corporate’s present expertise and the wants of its future technique.

In line with Gluchowski, the choice to downsize was “the toughest change” he’s needed to implement within the firm’s six-year historical past.

Within the layoff announcement, Gluchowski defined that the affected workers have been notified of their termination and emphasised that the choice was not performance-related. He highlighted the need of aligning the corporate’s assets with its new strategic targets.

Regardless of the layoffs, Matter Labs is presently hiring for key roles in engineering, enterprise improvement, and operations, underscoring its ongoing dedication to innovation and progress regardless of the discount in employees.

Shifting focus from general-purpose to area of interest options

The layoffs are a part of a broader strategic pivot for Matter Labs.

In June 2024, the corporate launched the Elastic Chain, a brand new resolution geared toward enhancing interoperability for the rising variety of groups constructing customized chains on ZKsync. This launch has prompted Matter Labs to rethink its positioning within the extremely aggressive Ethereum layer-2 ecosystem, which incorporates different main gamers like Coinbase’s Base, Polygon, Arbitrum, and Optimism.

Gluchowski indicated that Matter Labs could be transferring away from its preliminary focus as a general-purpose Ethereum scaler. As an alternative, the corporate is exploring extra area of interest and case-specific purposes of its know-how, a transfer designed to higher meet the wants of its customers and keep aggressive within the crowded market.

As Matter Labs adjusts its course, the corporate’s dedication to innovation stays sturdy. The layoffs, whereas tough, are a step in the direction of aligning its workforce and assets with its evolving technique within the Ethereum scaling area.