TL;DR
- Matter Labs reduces its workforce by 16% due to decreased demand for its ZKsync Era protocol.
- ZKsync’s activity has dropped from over 455,000 active addresses in April to approximately 92,620 currently.
- The company is adjusting its strategy and resources to align with the shift in market demand and the increased need for ZK Chains.
Matter Labs, the German company behind the Ethereum Layer 2 protocol ZKsync, has announced a significant reduction in its workforce, cutting 16% of its staff. This decision was made in response to changes in market trends and the company’s business needs.
Alex Gluchowski, Co-founder and CEO of Matter Labs, explained that the restructuring reflects a transformation in the market environment and the needs of teams using ZKsync Era. The decline in ZKsync’s activity has been evident in recent months. In April, the platform reached a peak of over 455,000 active addresses, but the number has now decreased to approximately 92,620, indicating a severe drop in demand.
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…
— Alex G. (∎, ∆) (@gluk64) September 3, 2024
ZKsync Adjusts and Adapts to the Crisis
Gluchowski highlighted that the staff reduction is part of a process to reassess the company’s strategy and team composition. The company has conducted an extensive organizational planning exercise, revealing mismatches between available talent and the new market needs. In response, Matter Labs is adjusting its roles and resources to better align its operations with market evolution and demands, particularly the increase in demand for ZK Chains.
Since its founding in 2018, Matter Labs has raised $458 million through four rounds of funding. Despite its success among Layer 2 solutions, the company is facing challenging times due to the decline in ZKsync’s activity. The decision to reduce the workforce aims to ensure that Matter Labs remains operational. The platform has had to adapt rapidly to market fluctuations and changes in blockchain technology demand.
