Polygon Labs Strengthens Scalability Focus with Major Restructuring

In an effort to accelerate the vision of moving “all money onchain” with more advanced scalability solutions, Polygon Labs has made significant organizational adjustments following a strategic acquisition. The company behind the Polygon network, a leading scalability solution for the Ethereum blockchain, has laid off 60 employees across various departments, according to internal sources speaking to CoinDesk. This move marks the third major reorganization in three years amid deep integration of two strategic acquisitions totaling $250 million.

Third Wave of Layoffs in Three Years

The recent staff cuts are part of a post-acquisition restructuring of Coinme and Sequence, two companies that bring significant expertise to the blockchain payment ecosystem. The company, which previously experienced two waves of large reductions in 2023 and 2024, now faces complex integration challenges.

The first round occurred in early 2023 when Polygon Labs laid off around 100 employees, representing 20% of its total workforce at the time, in an effort to consolidate business units. Less than a year later, in February 2024, the company made further adjustments by reducing 60 positions (19% of staff) citing operational efficiency improvements. Now, with a cut of 60 jobs in 2026, the restructuring pattern continues as the company adapts to a dynamic market landscape and an evolving scalability mission.

Integrating Coinme and Sequence for Payment Transformation

The decision to reduce a number of positions is not without challenges stemming from the integration issues that arose after acquiring Coinme and Sequence. Both companies brought teams and functions that, in some aspects, overlap with the existing organizational structure of Polygon Labs. The integration of these entities is designed to create a combined strength to advance payment technology built on blockchain scalability.

CEO Marc Boiron acknowledged these organizational dynamics via social media, stating that the structural changes relate to aligning redundant roles post-acquisition. He emphasized that the employees leaving the company are talented individuals who have made meaningful contributions to Polygon, and the company is committed to supporting them during the transition.

A Polygon Labs spokesperson confirmed that the company is not experiencing a net reduction in size, but rather an adjustment to keep the total number stable. By integrating around 200 employees from the new acquisitions, the organization is making adjustments to maintain balance. “As we integrate employees from Coinme and Sequence into Polygon Labs, we have made adjustments to keep the total number of employees consistent. These changes aim to balance the additions from the latest acquisitions, not to reduce the company’s size,” the company representative said.

Scalability as the Backbone of Polygon’s Transformation

Polygon has positioned itself as a primary scalability solution for the Ethereum ecosystem, enabling faster and cheaper transactions through Layer 2 technology. This focus on scalability is a strategic foundation for why the integration of Coinme and Sequence is crucial to the company’s long-term vision.

Leveraging Proof-of-Stake consensus algorithms, the Polygon network processes transactions with high efficiency. Its native token MATIC functions as a medium for paying transaction fees and can be staked to earn yields, creating a sustainable ecosystem. The transformation toward a payment focus and increased scalability requires precise organizational alignment, which is explained through the current restructuring.

Polygon was first launched in 2017 as Matic Network by Ethereum developers and officially went live in 2020. Since then, the network has grown into one of the most important scalability solutions within the blockchain ecosystem, especially for applications prioritizing speed and accessibility.

Financial Impact and Long-Term Commitment

Despite organizational changes, Polygon Labs maintains a solid financial foundation. The company reports having over $200 million in cash and 1.9 billion MATIC tokens, providing significant runway to support its long-term ambitions of creating blockchain-based payment infrastructure with optimal scalability.

From a market perspective, the MATIC token experienced a decline of about 6% in the last 24 hours according to CoinDesk data, in line with broader crypto market pressures. The CoinDesk20 index, which reflects overall crypto market sentiment, fell about 1% during the same period at the time of writing. These fluctuations indicate market sensitivity to organizational news, even as Polygon’s financial fundamentals remain strong.

The restructuring undertaken by Polygon Labs is not merely administrative adjustment but an integral part of its strategy to strengthen its position as a leader in blockchain scalability solutions. By integrating Coinme and Sequence’s expertise, the company aims to accelerate its vision of moving global financial infrastructure onchain, supported by continuously evolving scalability technology and a more mission-focused team.