- Matter Labs Axes Workforce by 16%
- This is to adapt to the new Ethereum L2 market requirements
- zkSync, Shibarium, Soneium, and other L2 protocols are actively fighting for leadership in the Ethereum ecosystem
Matter Labs, the company behind one of the industry’s key protocols zkSync, has made radical decisions to adapt to the changing market conditions of Ethereum Layer-2 solutions.
CEO Alex Gluchowsk shared that the decision, though difficult, was a deliberate one and was the result of exhaustive analysis and careful planning.
Adapting to New Developer Requirements
Alex Gluchowsk shared in his post-X that zkSync developers need to adapt to new technological and market conditions, which require changes in the organization and team.
After a thorough analysis of the current teams, the most appropriate people were selected to help lead development in a competitive direction. Matter Labs paid the remaining employees a severance package to cushion their departure.
This decision was prompted by the growing competition in the rapid development of Ethereum L2 solutions, and we’ve already seen cuts recently.
The competition itself is driven especially by the active Ethereum L2 initiatives of a giant like Sony. The recent launch of Sony’s Soneium in partnership with Startale, where they are leveraging the features, mechanisms, and benefits of Optimism, as well as having other very promising integrations like Astar Network and Chainlink.
Another major competitor, despite the recent downturn, remains Shibarium with its ShibTorch auto-burning mechanism, reducing the supply of tokens and increasing their value.
All this dramatically places Matter Labs with their zkSync in a fiercely competitive environment, and we have a very large-scale battle.
Conclusion
News about layoffs is always bad news, and the upcoming fierce battle for leadership in Ethereum L2 promises many ups and downs for the various companies and the solutions they depend on.
However, end users should benefit from this competition, which incentivizes each side to offer better solutions and more importantly, solutions at the Web3 infrastructure layer itself.
Let’s hope this doesn’t produce a whole wave of layoffs, but otherwise, this is good news to watch.
