Matter Labs to cut 16% of workforce amid organizational restructuring

Matter Labs, the key developer behind Ethereum layer-2 solution ZKsync, has announced that it will be reducing its workforce by 16% due to a major organizational restructuring.

The company will reduce these positions to better align with the evolving technology and support needs of ZKsync (ZKSY) developers.

In a statement at X, CEO Alex Gluchowski explained that the restructuring was driven by the need to adapt to new technological demands and the company’s changing role within the decentralized ecosystem. “We went through a major organizational planning exercise, and it became clear that the talent and roles we have today were not a perfect fit for our needs,” Gluchowski said.

This decision was made following a significant increase in demand for ZKsync technology, including the recent launch of Elastic Chain.

Despite the layoffs, Gluchowski said Matter Labs remains financially strong, has focused on strategic hiring, and continues its mission to advance crypto adoption.

Exit packages and optimism

Affected employees will receive a comprehensive exit package including three months basic salary, ongoing healthcare and career support. In addition, the company will assist with immigration issues for four months and provide career placement support to affected staff.

Earlier this year, Matter Labs withdrew its trademark applications for the term “ZK” after strong opposition from the zero-knowledge community, which argued that such innovations should remain in the public domain. The company decided to abandon its efforts after leading ZK researchers criticized the move, emphasizing that zero-knowledge proofs should not be monopolized by any one organization.

The company remains optimistic about its future, citing strong technological demand and continued growth opportunities.