Matter Labs has laid off 24 employees, more than 16% of its workforce, in response to market changes. The company is shifting its focus from general-purpose scaling to niche applications. Despite the layoffs, Matter Labs continues to hire for critical engineering and business roles.
Matter Labs, which operates the Ethereum scaling network ZKsync, announced it would lay off more than 16% of its workforce, affecting 24 employees.
This announcement, made by Matter Labs co-founder and CEO Alex Gluchowski on September 3, 2024, marks an important change for the company as it navigates the increasingly competitive landscape of Ethereum Layer 2 scaling solutions. I am.
Matter Lab reorganizes amid market challenges
The layoffs come as Matter Labs reevaluates its strategy in the face of changing market conditions and evolving business needs. This follows an extensive organizational planning exercise that revealed a mismatch between the company's current talent and future strategic needs.
Glukowski said the decision to downsize was “the most difficult change” the company had to make in its six-year history.
In announcing the layoffs, Glukowski said affected employees had been notified of their layoffs and stressed that the decision was not performance-related. He emphasized the need to align the company's resources with new strategic goals.
Despite the headcount reductions, Matter Labs is currently recruiting for key roles in engineering, business development, and operations, underscoring its continued commitment to innovation and growth despite the headcount reductions. Masu.
Shift focus from general purpose solutions to niche solutions
The layoffs are part of a broader strategic shift for Matter Labs.
In June 2024, the company introduced Elastic Chain, a new solution aimed at enhancing interoperability as a growing number of teams build custom chains with ZKsync. This launch has prompted Matter Labs to rethink its position in the competitive Ethereum Layer 2 ecosystem, which includes other major players such as Coinbase's Base, Polygon, Arbitrum, and Optimism.
Gluchowski hinted that Matter Labs may move away from its original focus as a general-purpose Ethereum scaler. Instead, the company is exploring more niche and case-specific applications for its technology, a move aimed at better meeting user needs and remaining competitive in a crowded market. .
Although Matter Labs is adjusting direction, the company's commitment to innovation remains strong. Although the layoffs are difficult, they are a step toward aligning employees and resources with Ethereum's evolving strategy in the scaling space.
