Matter Labs Restructures Organization, Lays Off 16% of Staff to Meet Developers' New Demand

Matter Labs, the company behind Ethereum Layer-2 protocol zkSync, has announced its plans to restructure the organization. Unfortunately, this involves a couple of staff reduction that impacted about 16% of the Matter Labs' team.

Matter Labs, zkSync’s parent company, has announced plans to restructure the organization. This will involve a staff reduction of approximately 16%.

According to Matter Labs CEO Alex Gluchowski, this decision was difficult, especially considering the company's six years of operation. However, he stated that it was necessary to adapt to the evolving needs of developers building on zkSync.

In his X post, Gluchowski highlighted the changing nature of these developers' operations, which now demand a different type of technology and support. This, coupled with the increasing demand for zk chains, prompted Matter Labs to assess its talent pool and identify any misalignments.

After a planning exercise, the company determined that the talent it had at the time did not fully meet the present needs. The layoffs were thus the result of a rigorous review process. With the affected individuals leaving the company, Matter Labs aims to ensure that it has the right people in every single role.

To ease the departure of the affected employees, Matter Labs has created a severance package. This move also aligns with the company's efforts to prioritize its developers and the broader ecosystem.

Notably, this news comes barely three months after Matter Labs faced backlash from its Chinese community. The community members expressed grievances over key leadership decisions, emphasizing their demand for transparency and accountability towards contributors and members.

Beyond zkSync, a new pivot is emerging for Layer-2 protocols. These protocols are vying to outdo each other in a silent competition, with constant updates to remain relevant in the ecosystem. Hence, Matter Labs' reshuffling of its employees comes as little surprise.

Now, the question arises whether other competing L2 chains will also be pivoting and potentially laying off staff.

Last month, Shiba Inu's Layer-2 scaling solution, Shibarium, welcomed an auto-burning mechanism called ShibTorch. This portal facilitates the burning of base fees paid by users, aiming to control inflation. By reducing the supply, it generates a higher value and facilitates the incentivization of holders.

In another development, Sony partnered with Startale to announce a new Ethereum L2, Soneium, on Optimism. The project boasts support from Astar Network, Alchemy, Chainlink, Circle, Optimism, and The Graph.

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