In a letter to the Matter Labs community, the founder and CEO of zkSync, Alex G., announced a significant restructuring within the company. This decision, described as the hardest change we’ve made in six years, involves laying off approximately 16% of the team, which equates to a substantial number of employees. This action was necessitated by the evolving market dynamics and business requirements, as well as a need for a more strategic realignment of the team’s roles and responsibilities.
The Need for Change
From its inception, Matter Labs was committed to maintaining a lean and focused team dedicated to advancing the cause of cryptographic technology in the realm of personal sovereignty. This strategy of having a small, efficient team enabled the company to make impactful innovations and adapt swiftly to external changes. However, the landscape has shifted this year. Many teams developing on zkSync Era now require different technical and support approaches, and the demand for ZK chains has surged. This shift in the company’s market environment and business needs has prompted a reevaluation of Matter Labs’ strategic objectives, target audience, and team composition.
Strategic Reassessment
In light of these changes, the company conducted a thorough review of all roles to ensure that each member is placed in the most suitable position, aiming to maintain team agility and efficiency. The review process identified that the current talent and job placements did not fully align with the evolving needs of the company. This led to the decision to reassess the team’s structure and roles, ultimately resulting in layoffs.
Prioritizing Employee Well-being
Matter Labs acknowledges the emotional impact of this decision and has outlined a comprehensive plan to support the affected employees. This includes:
- Financial Compensation: Providing three months of basic salary as a base.
- Healthcare and Mental Health Support: Offering four months of continued health benefits.
- Option Vesting: Ensuring that options vesting is completed before the formal departure date for those who have served more than six months, with no vesting period required.
- Career Support: Allowing employees to share their names with investors and providing one-on-one career support meetings with leadership team members to assist in career planning.
- Resume and LinkedIn Profile Optimization: Offering guidance on refining resumes and LinkedIn profiles.
- Retained Equipment: Allowing employees to keep the company-provided laptop and other equipment purchased with company subsidies.
- Immigration Assistance: Providing support for immigration matters for a period of four months.
Vision for the Future
As CEO, Alex G. takes responsibility for simplifying the organizational structure to prevent future painful adjustments. This involves ensuring that all new hires and job functions are aligned with the company’s long-term strategy and adhere to the highest performance standards. Despite the pain associated with today’s decision, the future of Matter Labs remains optimistic. The company has witnessed a significant increase in the number of chains launching on Elastic Chain, and there is a growing number of teams developing on zkSync Era. With sufficient financial resources, Matter Labs is poised to continue growing and recruiting critical talent for its next phase.
Acknowledgment and Gratitude
The founder extends heartfelt thanks to all team members, both those who are leaving and those who remain, for their invaluable contributions that have shaped Matter Labs into a transformative force for global freedom. The future of Matter Labs, guided by these efforts, is one of continued innovation and impact in the world of cryptography and personal sovereignty.
Conclusion
This open letter serves as a transparent and heartfelt acknowledgment of the challenges faced by Matter Labs in adapting to a changing market and the need for strategic realignment. It underscores the company’s commitment to supporting its employees during this transition, while also laying the groundwork for future growth and innovation.
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