Matter Labs Reduces Workforce by 16% Amid Declining Demand for ZKsync Era

Matter Labs, the developer of the Ethereum Layer 2 protocol ZKsync, has reduced its workforce by approximately 16% as the demand for its ZKsync Era technology has significantly decreased. CEO Alex Gluchowski announced the layoffs, citing a shift in market conditions and the evolving needs of teams building on ZKsync Era. The company, which has been committed to maintaining a lean and focused team, is now adjusting its strategy and team composition to better align with the current market environment.

The number of active addresses on ZKsync has dropped to around 92,620 as of Monday, a steep decline from a peak of over 455,000 in April. This decline reflects the reduced demand for ZKsync Era as the market and technological requirements have evolved. Despite this, Gluchowski noted that there is growing interest in ZK Chains, prompting the company to reassess its priorities and restructure its workforce accordingly.

Founded in 2018, Matter Labs has raised $458 million in funding over four rounds. The recent launch of the Elastic Chain and ZK Nation led the company to reevaluate its strategy, goals, and team composition, resulting in the workforce reduction to ensure agility and effectiveness in the new market landscape.

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