TL;DR:
- Matter Labs laid off part of its team to focus on Prividium, its private blockchain platform for regulated financial institutions.
- CEO Alex Gluchowski clarified that the layoffs reflect a strategic shift, not the performance of the affected employees.
- The community questioned the fate of the approximately $450 million raised in previous funding rounds.
Matter Labs, the company behind ZKsync, Ethereum’s L2 scaling solution, announced a headcount reduction to deepen its focus on Prividium, a permissioned blockchain platform aimed at fintech companies and financial institutions operating under regulatory frameworks. CEO Alex Gluchowski explained the decision in a post on X, stating that the restructuring does not reflect the performance of the affected employees but rather the evolution of the product the company decided to prioritize.
According to Gluchowski, Matter Labs began shifting toward regulated institutional clients in 2024, a process that led to the creation of Prividium. Feedback received from those clients redefined the expertise profile required to develop the platform, leaving some existing roles out of alignment with the new priorities.
Could you please explain?
You raised 450 million in investment to develop the product.
Where's the money?And why are you asking for more and laying people off?
— Alessio | STEPN (@kreativOff) June 16, 2026
In his message, the Matter Labs CEO acknowledged that among the affected employees are some of the engineers, designers, and operators he most valued working with. The company offered financial support and transition assistance to departing employees, and also published a talent directory to facilitate their rehiring by third parties.
Matter Labs Targets the Regulated Financial Sector with Prividium
Prividium is a private, permissioned blockchain infrastructure designed specifically for entities that require on-chain settlement compatible with regulatory compliance frameworks. Zero-knowledge technology is the technical core that enables the combination of privacy and verifiability that institutional profiles demand.
The Money Raises Questions
The restructuring drew criticism from the crypto community. While some users welcomed the clearer focus on enterprise infrastructure, others publicly questioned the fate of the approximately $450 million raised in funding rounds. One of the most prominent posts asked where that capital had gone, given that the company was reducing its headcount while simultaneously seeking new funds.
This is not the first time Matter Labs has carried out a headcount reduction tied to a strategic shift. Gluchowski insisted that the driving force behind the adjustment is the long-term product direction, arguing that serving regulated financial institutions requires a capability profile different from what the earlier stages of ZKsync’s development demanded.
