Matter Labs, the company behind the zkSync Ethereum layer-2 network, cut staff on Tuesday and said it is committing the entire organization to Prividium, an institutional on-chain privacy infrastructure platform it began building in 2024.
Matter Labs co-founder and chief executive Alex Gluchowski confirmed the reductions in a post on X Tuesday afternoon, framing the move as a skills realignment rather than a cost cut.
"In 2024 we began building for regulated financial institutions," Gluchowski wrote. "That work became Prividium, and the entire company is now committed to one goal: building the infrastructure that brings enterprises and regulated financial institutions onchain, with privacy at its core."
Gluchowski said departing employees had been offered financial support and that the company is coordinating job placement through an opt-in talent list shared with outside employers. He did not disclose the number of positions eliminated.
The zkSync token, which has a market cap of $115 million, is up 4.3% in the past 24 hours, according to CoinGecko.
