Matter Labs Laysoff 16% of Workforce Amid Strategic Shift
On September 3, 2024, Alex Gluchowski, Co-Founder and CEO of Matter Labs revealed a significant restructuring of the company, which includes laying off 16% of its workforce. This decision impacts approximately 24 employees, marking the first reduction in staff since the company’s inception six years ago.
I just sent this message to the Matter Labs team:
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Today, I’m sharing the hardest change we had to make in the 6-year history of Matter Labs. We are restructuring the organization and parting ways with many amazing team members (~16% of the team). We’ve already reached out…
Gluchowski explained that the restructuring is part of a strategic shift to align with evolving market demands and the decentralisation of its ZKsync ecosystem. “The role of Matter Labs in the decentralized ZKsync ecosystem has evolved, too,” he stated. “The launch of the Elastic Chain and ZK Nation was the right moment to re-evaluate our strategy, goals, and team composition.”
Adapting to Market Changes
The decision to downsize comes as Matter Labs transitions into a new phase of decentralisation. With the launch of the ZKsync Ecosystem Portal in collaboration with DappRadar, the company is moving towards a model that emphasizes community ownership and decentralised governance.
Grateful for the overwhelming support for our talented team members impacted today. We are giving them the opportunity to opt into a list that we'll publish within the next 48 hours. Please DM me if you're interested, or add your contact info here 🙏https://t.co/ut7vTsG5rIhttps://t.co/uOK4cl2L9I
Nana Murugesan, Matter LabsPresident, highlighted that the restructuring is not financially motivated but is aimed at ensuring the team is “lean” and better aligned with the company’s mission. “We are ensuring that we have the right roles and people in place to be effective in accomplishing our mission,” Murugesan said.
Addressing Industry Backlash
The restructuring follows earlier controversies, including criticism of Matter Labs’ attempt to trademark the term “zero-knowledge.” This move was condemned by industry figures such as StarkWareCEOEli Ben-Sasson, who likened it to a baker trying to claim ownership of bread. As a result, Matter Labs withdrew its trademark applications in June 2024.
Gluchowski assured that the company is providing comprehensive support to affected employees. Severance packages include three months of base salary, extended healthcare benefits, and career support, including assistance with CVs and LinkedIn profiles. The company is also offering help with immigration and allowing departing employees to keep their company-issued equipment.
Despite the layoffs, Matter Labs remains optimistic about its future. The company plans to continue developing its Elastic Chain, with around a dozen blockchain projects scheduled to launch on the platform this year. Gluchowski emphasised the company’s commitment to its mission and long-term goals, stating, “We believe that there is the right architecture for [Elastic Chain],” and expressed confidence in the company’s financial stability and growth prospects.
Conclusion
In conclusion, Matter Labs’ restructuring reflects a strategic realignment with the evolving needs of the blockchain industry and a commitment to maintaining a lean, effective team as it navigates its next phase of decentralisation.
