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Matter Labs, the developer behind the Ethereum layer-2 scaling solution ZKsync, has announced a restructuring plan that will reduce its workforce by 16%. The move, disclosed by CEO and co-founder Alex Gluchowski on September 3, is aimed at adapting the company to the evolving landscape of the blockchain sector.
Gluchowski explained that Matter Labs has historically thrived with a leaner team and that the restructuring is designed to align the company’s resources with the dynamic needs of the market. He also pointed out the company’s diminished role in the increasingly decentralized ZKsync ecosystem as a factor in the decision.
As part of the restructuring, Matter Labs will provide severance packages to affected employees. Gluchowski emphasized the company's commitment to its ongoing projects, noting that approximately 12 {blockchain} projects are expected to launch on the ZKsync Elastic Chain ecosystem within the year. Additionally, third-party developers continue to advance work on ZKsync Era, the latest iteration of the platform.
The restructuring follows a significant milestone for ZKsync. In September 2023, Matter Labs introduced the ZKsync Ecosystem Portal in partnership with DappRadar. This initiative marked a crucial step toward decentralizing the ZKsync ecosystem by transferring control to the community. The objective is to further decentralize the protocol's technology, community governance, and critical infrastructure.
Earlier this year, Matter Labs faced controversy over its attempt to trademark the term “zero-knowledge,” a fundamental technology in the blockchain space. The move was widely criticized within the industry, with StarkWare CEO Eli Ben-Sasson comparing the attempt to a baker claiming exclusive rights to bread. The backlash led Matter Labs to withdraw all trademark applications related to “zero-knowledge” technology by June 2024.
Despite these challenges, Matter Labs remains focused on its goal of fostering a decentralized blockchain ecosystem and continues to support the development of ZKsync’s expanding range of applications.
