ZKsync Creator announces layoffs as it focuses on the privacy-permitted chain

Leadership says the layoffs were driven by changing technical requirements rather than any cost-cutting pressures.

Matter Labs is reshaping its team as the company moves to a permissioned privacy chain called Prividium.

The layoffs will include senior engineers, designers and operators who are no longer aligned with the new direction.

The founder explains the layoff decision.

Alex Gluchowski, CEO of the company, certain News on social media, indicating that the decision came after the company’s shift in 2024 towards building products for regulated financial institutions.

“Today we downsized the Matter Labs team. This was my decision, and I want to explain it,” he wrote.

According to him, Prividium has since become Matter Labs’ main focus, as the company is now fully committed to building tools that help companies move across the chain.

The founder added that as the project evolved, the company gained a clearer understanding of what customers needed, which greatly influenced the direction of Prividium and the type of talent needed moving forward. As a result, some roles that made sense during the early stages of construction are no longer the best fit for the company’s current priorities. He said this was what prompted the restructuring decision.

Company website Countries Prividium is an Ethereum-based blockchain platform for financial institutions and fintech companies that gives organizations a way to conduct transactions securely while complying. Additionally, the product is built on the privacy-focused Layer-2 blockchain powered by zero-knowledge technology.

He concluded by saying: “To everyone who is leaving, thank you for what you have built here, and for the standard you have set.”

Alex said the move was not a reflection of the employee’s abilities and contributions, adding that the engineers, designers and operators affected were some of the best people he had worked with. The workers who left also reportedly received financial assistance and support as they went through the transition.

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The community remains divided over the job cuts

Community reaction to the news was mixed, with some enthusiastic about the project and others excited he asks The $450 million raised by Matter Labs went to develop the product.

“Can you explain? You raised $450 million in investment to develop the product. Where is the money? Why are you asking for more and laying off employees?” They wrote.

Meanwhile, this is not the first time the company has had to lay off its employees. The company too Reduce its size Its team is in the midst of focusing on privacy-focused tools in 2024, with the company saying the restructuring was necessary to align its workforce with new priorities rather than undertake short-term cost-cutting.